Alcon (ALC) vs Medline Inc. (MDLN)

Alcon and Medline Inc. are both Medical Instruments & Supplies companies. Medline Inc. is the larger, with a market value of $52.3B against $36.9B — 1.4× the size. Alcon trades at the lower P/E: 58.4× against 58.4×. Alcon has the higher net margin (5.92% vs 1.84%) and the lower return on invested capital (2.38% vs 17.8%). Across the 17 metrics below, Medline Inc. leads on 9 and Alcon on 8.

Valuation

Metric ALC MDLN Medical Instruments & Supplies median
P/E 58.36 58.36 30.28
P/S 3.43 1.14 2.49
P/B 1.72 1.81 2.34
Price to free cash flow 23.34 11.29 23.49
EV/EBITDA 14.80 4.47 14.87
EV/Sales 3.73 1.46 2.75
Earnings yield 1.71% 1.71% 0.00%
Free cash flow yield 4.28% 8.85% 0.59%

Profitability

Metric ALC MDLN Medical Instruments & Supplies median
Gross margin 56.85% 44.88% 53.60%
Operating margin 8.73% 29.67% 1.97%
Net margin 5.92% 1.84% 0.00%
Free cash flow margin 14.68% 10.11% 2.36%
Return on equity 2.94% 3.18% 0.00%
Return on assets 2.06% 1.49% 0.00%
Return on invested capital 2.38% 17.80% 0.13%

Growth

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

Health

Metric ALC MDLN Medical Instruments & Supplies median
Debt to equity 0.22 0.65 0.10
Current ratio 2.09 4.04 2.47
Net debt to EBITDA 1.23 3.24 0.97

Dividend

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

Size

Metric ALC MDLN Medical Instruments & Supplies median
Market cap 36.90b 52.26b 1.71b

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