Comparing Solventum (NYSE:SOLV) & GeneDx (NASDAQ:WGS)

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

Analyst Ratings

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

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

GeneDx currently has a consensus price target of $138.13, suggesting a potential upside of 44.95%. Solventum has a consensus price target of $90.83, suggesting a potential upside of 18.58%. Given GeneDx’s stronger consensus rating and higher probable upside, equities research analysts plainly believe GeneDx is more favorable than Solventum.

Profitability

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

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

Earnings and Valuation

This table compares GeneDx and Solventum”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeneDx	$305.45 million	9.02	-$52.29 million	$0.09	1,058.78
Solventum	$8.25 billion	1.61	$478.00 million	$8.68	8.83

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.

Insider and Institutional Ownership

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

Volatility and Risk

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

Summary

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

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.

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.