Contrasting Solventum (NYSE:SOLV) and Alpha Tau Medical (NASDAQ:DRTS)

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

Profitability

This table compares Alpha Tau Medical and Solventum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Tau Medical	N/A	-38.62%	-29.89%
Solventum	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Alpha Tau Medical and Solventum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Tau Medical	0	0	2	0	3.00
Solventum	1	9	1	0	2.00

Alpha Tau Medical currently has a consensus target price of $8.00, indicating a potential upside of 138.81%. Solventum has a consensus target price of $68.29, indicating a potential downside of 1.69%. Given Alpha Tau Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Alpha Tau Medical is more favorable than Solventum.

Institutional and Insider Ownership

2.7% of Alpha Tau Medical shares are owned by institutional investors. 39.5% of Alpha Tau Medical shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Alpha Tau Medical and Solventum”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Tau Medical	N/A	N/A	-$29.16 million	($0.43)	-7.79
Solventum	$8.26 billion	1.45	N/A	N/A	N/A

Solventum has higher revenue and earnings than Alpha Tau Medical.

Summary

Alpha Tau Medical beats Solventum on 5 of the 8 factors compared between the two stocks.

About Alpha Tau Medical

Alpha Tau Medical Ltd., a clinical-stage oncology therapeutics company, engages in research, development, and commercialization of diffusing alpha-emitters radiation therapy (Alpha DaRT) for the treatment of solid cancer In Israel and the United States. Its Alpha-DaRT technology used in clinical trials for skin, oral, pancreatic, prostate, and breast cancers; and preclinical studies for brain, hepatic cell carcinoma, glioblastoma multiforme, lung cancer, and others. The company was incorporated in 2015 and is headquartered in Jerusalem, Israel.

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.