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 $162.4B against $36.9B — 4.4× the size. Intuitive Surgical, Inc. trades at the lower P/E: 55.7× against 58.4×. Intuitive Surgical, Inc. grew revenue faster over the last twelve months: 20.5% against 8.34%. Intuitive Surgical, Inc. has the higher net margin (25.5% vs 5.92%) and the higher return on invested capital (17.0% 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 58.36 55.70 30.28
P/S 3.43 14.04 2.49
P/B 1.72 10.08 2.34
Price to free cash flow 23.34 44.60 23.49
EV/EBITDA 14.80 38.32 14.87
EV/Sales 3.73 13.69 2.75
Earnings yield 1.71% 1.80% 0.00%
Free cash flow yield 4.28% 2.24% 0.59%

Profitability

Metric ALC ISRG Medical Instruments & Supplies median
Gross margin 56.85% 67.19% 53.60%
Operating margin 8.73% 28.37% 1.97%
Net margin 5.92% 25.54% 0.00%
Free cash flow margin 14.68% 31.47% 2.36%
Return on equity 2.94% 17.84% 0.00%
Return on assets 2.06% 15.28% 0.00%
Return on invested capital 2.38% 17.00% 0.13%

Growth

Metric ALC ISRG Medical Instruments & Supplies median
Revenue growth (TTM) 8.34% 20.45% 8.97%
EPS growth (last fiscal year) (3.41%) 22.59% 6.51%
Revenue growth, 5-year CAGR 8.77% 18.22% 8.85%
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 3.33 2.47
Net debt to EBITDA 1.23 (1.64) 0.97

Dividend

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

Size

Metric ALC ISRG Medical Instruments & Supplies median
Market cap 36.90b 162.41b 1.71b

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