Alcon (ALC) vs Intuitive Surgical, Inc. (ISRG)

Alcon and Intuitive Surgical, Inc. are both Medical Instruments & Supplies companies. Intuitive Surgical, Inc. is the larger, with a market value of $140.7B against $30.9B — 4.5× the size. Intuitive Surgical, Inc. trades at the lower P/E: 45.8× against 49.2×. Intuitive Surgical, Inc. grew revenue faster over the last twelve months: 20.7% against 8.34%. Intuitive Surgical, Inc. has the higher net margin (28.5% vs 5.92%) and the higher return on invested capital (16.5% vs 2.38%). Across the 22 metrics below, Intuitive Surgical, Inc. leads on 16 and Alcon on 6.

Valuation

Metric ALC ISRG Medical Instruments & Supplies median
P/E 49.21 45.83 34.17
P/S 2.89 13.00 2.83
P/B 1.45 7.84 2.82
Price to free cash flow 19.68 43.89 25.69
EV/EBITDA 12.67 32.50 16.08
EV/Sales 3.19 12.53 3.06
Earnings yield 2.03% 2.18% (1.84%)
Free cash flow yield 5.08% 2.28% 0.17%

Profitability

Metric ALC ISRG Medical Instruments & Supplies median
Gross margin 56.85% 66.68% 54.62%
Operating margin 8.73% 31.28% 1.64%
Net margin 5.92% 28.45% 0.00%
Free cash flow margin 14.68% 29.62% 1.61%
Return on equity 2.94% 17.32% 0.00%
Return on assets 2.06% 15.30% 0.00%
Return on invested capital 2.38% 16.49% 0.00%

Growth

Metric ALC ISRG Medical Instruments & Supplies median
Revenue growth (TTM) 8.34% 20.66% 9.20%
EPS growth (last fiscal year) (3.41%) 22.59% —
Revenue growth, 5-year CAGR 8.77% 18.22% 9.48%
Net income growth, 5-year CAGR 0.00% 21.91% 0.00%

Health

Metric ALC ISRG Medical Instruments & Supplies median
Debt to equity 0.22 0.00 0.08
Current ratio 2.09 4.96 2.49
Net debt to EBITDA 1.23 (1.64) 0.83

Dividend

Metric ALC ISRG Medical Instruments & Supplies median
Dividend yield 0.36% — 0.99%
Payout ratio 0.32 0.00 0.00

Size

Metric ALC ISRG Medical Instruments & Supplies median
Market cap 30.92b 140.68b 938.39m

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