Alcon (ALC) vs Align Technology, Inc. (ALGN)

Alcon and Align Technology, Inc. are both Medical Instruments & Supplies companies. Alcon is the larger, with a market value of $36.9B against $11.3B — 3.3× the size. Align Technology, Inc. trades at the lower P/E: 23.1× against 58.4×. Alcon grew revenue faster over the last twelve months: 8.34% against 4.42%. Align Technology, Inc. has the higher net margin (11.8% vs 5.92%) and the higher return on invested capital (12.3% vs 2.38%). Across the 22 metrics below, Align Technology, Inc. leads on 17 and Alcon on 5.

Valuation

Metric ALC ALGN Medical Instruments & Supplies median
P/E 58.36 23.08 30.28
P/S 3.43 2.71 2.49
P/B 1.72 2.66 2.34
Price to free cash flow 23.34 16.84 23.49
EV/EBITDA 14.80 12.64 14.87
EV/Sales 3.73 2.44 2.75
Earnings yield 1.71% 4.33% 0.00%
Free cash flow yield 4.28% 5.94% 0.59%

Profitability

Metric ALC ALGN Medical Instruments & Supplies median
Gross margin 56.85% 69.14% 53.60%
Operating margin 8.73% 14.92% 1.97%
Net margin 5.92% 11.83% 0.00%
Free cash flow margin 14.68% 18.03% 2.36%
Return on equity 2.94% 0.00% 0.00%
Return on assets 2.06% 7.71% 0.00%
Return on invested capital 2.38% 12.27% 0.13%

Growth

Metric ALC ALGN Medical Instruments & Supplies median
Revenue growth (TTM) 8.34% 4.42% 8.97%
EPS growth (last fiscal year) (3.41%) 0.53% 6.51%
Revenue growth, 5-year CAGR 8.77% 10.30% 8.85%
Net income growth, 5-year CAGR 0.00% (25.40%) 0.00%

Health

Metric ALC ALGN Medical Instruments & Supplies median
Debt to equity 0.22 0.00 0.10
Current ratio 2.09 1.42 2.47
Net debt to EBITDA 1.23 (1.40) 0.97

Dividend

Metric ALC ALGN Medical Instruments & Supplies median
Dividend yield 0.46% — 1.02%
Payout ratio 0.27 — 0.27

Size

Metric ALC ALGN Medical Instruments & Supplies median
Market cap 36.90b 11.32b 1.71b

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