Head-To-Head Contrast: Solventum (NYSE:SOLV) & GeneDx (NASDAQ:WGS)

Solventum (NYSE:SOLV) and GeneDx (NASDAQ:WGS) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Profitability

This table compares Solventum and GeneDx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solventum	18.13%	28.01%	7.17%
GeneDx	0.52%	20.22%	11.89%

Valuation and Earnings

This table compares Solventum and GeneDx”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solventum	$8.25 billion	1.62	$478.00 million	$8.68	8.86
GeneDx	$305.45 million	9.11	-$52.29 million	$0.09	1,069.56

Solventum has higher revenue and earnings than GeneDx. Solventum is trading at a lower price-to-earnings ratio than GeneDx, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Solventum has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, GeneDx has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Solventum and GeneDx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solventum	1	6	7	0	2.43
GeneDx	1	3	6	0	2.50

Solventum presently has a consensus target price of $90.83, suggesting a potential upside of 18.16%. GeneDx has a consensus target price of $138.13, suggesting a potential upside of 43.49%. Given GeneDx’s stronger consensus rating and higher probable upside, analysts plainly believe GeneDx is more favorable than Solventum.

Insider and Institutional Ownership

61.7% of GeneDx shares are held by institutional investors. 0.1% of Solventum shares are held by company insiders. Comparatively, 29.6% of GeneDx shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

GeneDx beats Solventum on 8 of the 14 factors compared between the two stocks.

About Solventum

Solventum Corporation, a healthcare company, engages in the developing, manufacturing, and commercializing a portfolio of solutions to address critical customer and patient needs. It operates through four segments: Medsurg, Dental Solutions, Health Information Systems, and Purification and Filtration. The Medsurg segment is a provider of solutions including advanced wound care, I.V. site management, sterilization assurance, temperature management, surgical supplies, stethoscopes, and medical electrodes. The Dental Solutions segment provides a comprehensive suite of dental and orthodontic products including brackets, aligners, restorative cements, and bonding agents. The Health Information Systems provides software solutions including computer-assisted, physician documentation, direct-to-bill and coding automation, classification methodologies, speech, recognition, and data visualization platforms. The Purification and Filtration segment provides purification and filtration technologies including filters, purifiers, cartridges, and membranes. The company was incorporated in 2023 and is based in Saint Paul, Minnesota.

About GeneDx

GeneDx Holdings Corp., through its subsidiaries, provides genomics-related diagnostic and information services. The company offers Centrellis, an AI-driven health intelligence platform that integrates digital tools and artificial intelligence allowing scientists to ingest and synthesize clinical and genomic data to deliver comprehensive health insights. It provides genetic diagnostic tests, screening solutions, and information with a focus on pediatrics, rare diseases for children and adults, and hereditary cancer screening. GeneDx Holdings Corp. was founded in 2017 and is headquartered in Stamford, Connecticut.