WallStSmart

ResMed Inc (RMD)vsSolventum Corp. (SOLV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Solventum Corp. generates 54% more annual revenue ($8.32B vs $5.40B). RMD leads profitability with a 27.5% profit margin vs 18.7%. SOLV appears more attractively valued with a PEG of 1.22. SOLV earns a higher WallStSmart Score of 70/100 (B-).

RMD

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 9.5Value: 8.7Quality: 8.3
Piotroski: 6/9Altman Z: 4.34

SOLV

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 7.0Value: 10.0Quality: 6.0
Piotroski: 3/9Altman Z: 1.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RMDUndervalued (+14.4%)

Margin of Safety

+14.4%

Fair Value

$303.30

Current Price

$226.31

$76.99 discount

UndervaluedFair: $303.30Overvalued
SOLVUndervalued (+80.4%)

Margin of Safety

+80.4%

Fair Value

$415.58

Current Price

$64.64

$350.94 discount

UndervaluedFair: $415.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RMD4 strengths · Avg: 9.5/10
Operating MarginProfitability
35.2%10/10

Strong operational efficiency at 35.2%

Altman Z-ScoreHealth
4.3410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
25.7%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
27.5%9/10

Keeps 28 of every $100 in revenue as profit

SOLV4 strengths · Avg: 9.5/10
P/E RatioValuation
7.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
38.9%10/10

Every $100 of equity generates 39 in profit

EPS GrowthGrowth
100.8%10/10

Earnings expanding 100.8% YoY

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

RMD0 concerns · Avg: 0/10

No major concerns identified

SOLV4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.033/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-3.7%2/10

Revenue declined 3.7%

Altman Z-ScoreHealth
1.272/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : RMD

The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.5% and operating margin at 35.2%. Revenue growth of 11.0% demonstrates continued momentum.

Bull Case : SOLV

The strongest argument for SOLV centers on P/E Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 18.7% and operating margin at 7.0%. PEG of 1.22 suggests the stock is reasonably priced for its growth.

Bear Case : RMD

No major red flags identified for RMD, but monitor valuation.

Bear Case : SOLV

The primary concerns for SOLV are Debt/Equity, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

RMD profiles as a mature stock while SOLV is a declining play — different risk/reward profiles.

RMD is growing revenue faster at 11.0% — sustainability is the question.

RMD generates stronger free cash flow (311M), providing more financial flexibility.

Monitor MEDICAL INSTRUMENTS & SUPPLIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RMD scores higher overall (70/100 vs 70/100), backed by strong 27.5% margins and 11.0% revenue growth. SOLV offers better value entry with a 80.4% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

ResMed Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.

Visit Website →

Solventum Corp.

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. The company is headquartered in Saint Paul, Minnesota.

Visit Website →

Want to dig deeper into these stocks?