HealthStream vs Solventum
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KIRAβs take AI analyst
I put HealthStream and Solventum side by side, using each oneβs latest annual report. Here is what stands out:
- Solventum is the larger business, with $8.3B of revenue in fiscal 2025 against $304M for HealthStream, about 27 times as much.
- HealthStream grew revenue faster (4.3%, against 0.9%).
- Solventum kept more of each dollar of sales as operating profit (26.2% operating margin, against 6.7%).
- HealthStream turned more of its sales into free cash flow (19.6% FCF margin, against β0.1%).
- Investors pay more for each dollar of HealthStreamβs earnings: a P/E of 48.8x against 10.5x for Solventum.
Who comes out ahead
Of the 6 measures where higher (or lower) is clearly better, how many each company leads.
HealthStream
HSTM
3/6
Revenue growthFCF marginShare count change
Solventum
SOLV
3/6
Operating marginNet marginReturn on equity
Side by side
Best in the row
| Latest fiscal year | HSTM FY25 | SOLV FY25 |
|---|---|---|
| Size | ||
| Market cap | $1.0B | $14.9B |
| Revenue | $304M | $8.3B |
| Free cash flow | $59.6M | β$10.0M |
| Net income | $18.3M | $1.6B |
| Growth | ||
| Revenue growth | 4.3% | 0.9% |
| 5-year growth | 4.4% | β |
| Share count change | β1.3% | 0.9% |
| Profitability | ||
| Gross margin | β | 53.5% |
| Operating margin | 6.7% | 26.2% |
| Net margin | 6.0% | 18.7% |
| FCF margin | 19.6% | β0.1% |
| Return on capital | β | 20.4% |
| Return on equity | 5.1% | 38.9% |
| Balance sheet | ||
| Net debt | β | $4.2B |
| Net debt / EBITDA | β | 1.6x |
| Dividends and buybacks | $33.7M | $0.0M |
| Valuation & quality | ||
| P/E | 48.8x | 10.5x |
| Piotroski F-score | β | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.