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 $151.2B against $32.1B — 4.7× the size. Intuitive Surgical, Inc. trades at the lower P/E: 48.3× against 50.5×. 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 50.52 48.27 33.75
P/S 2.97 13.69 2.52
P/B 1.49 8.26 2.48
Price to free cash flow 20.21 46.23 25.19
EV/EBITDA 12.97 34.29 14.62
EV/Sales 3.27 13.22 2.88
Earnings yield 1.98% 2.07% (2.67%)
Free cash flow yield 4.95% 2.16% 0.09%

Profitability

Metric ALC ISRG Medical Instruments & Supplies median
Gross margin 56.85% 66.68% 54.29%
Operating margin 8.73% 31.28% 1.07%
Net margin 5.92% 28.45% (1.61%)
Free cash flow margin 14.68% 29.62% 1.08%
Return on equity 2.94% 17.32% (1.32%)
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% 8.85%
EPS growth (last fiscal year) (3.41%) 22.59% 8.65%
Revenue growth, 5-year CAGR 8.77% 18.22% 9.17%
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 0.10
Current ratio 2.09 4.96 2.48
Net debt to EBITDA 1.23 (1.64) 0.89

Dividend

Metric ALC ISRG Medical Instruments & Supplies median
Dividend yield 0.53% — 1.11%
Payout ratio 0.27 — 0.27

Size

Metric ALC ISRG Medical Instruments & Supplies median
Market cap 32.10b 151.15b 619.84m

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