Alcon (ALC) vs ResMed Inc. (RMD)

Alcon and ResMed Inc. are both Medical Instruments & Supplies companies. Alcon and ResMed Inc. are of similar size ($31.9B and $30.9B). ResMed Inc. trades at the lower P/E: 21.3× against 49.2×. ResMed Inc. grew revenue faster over the last twelve months: 9.85% against 8.34%. ResMed Inc. has the higher net margin (26.9% vs 5.92%) and the higher return on invested capital (21.4% vs 2.38%). Both pay a dividend; ResMed Inc. yields more (1.06% vs 0.36%). Across the 23 metrics below, ResMed Inc. leads on 17 and Alcon on 6.

Valuation

Metric ALC RMD Medical Instruments & Supplies median
P/E 49.21 21.25 34.17
P/S 2.89 5.72 2.83
P/B 1.45 4.91 2.82
Price to free cash flow 19.68 19.86 25.69
EV/EBITDA 12.67 14.68 16.08
EV/Sales 3.19 5.53 3.06
Earnings yield 2.03% 4.71% (1.84%)
Free cash flow yield 5.08% 5.03% 0.17%

Profitability

Metric ALC RMD Medical Instruments & Supplies median
Gross margin 56.85% 61.06% 54.62%
Operating margin 8.73% 33.37% 1.64%
Net margin 5.92% 26.94% 0.00%
Free cash flow margin 14.68% 28.81% 1.61%
Return on equity 2.94% 24.27% 0.00%
Return on assets 2.06% 17.77% 0.00%
Return on invested capital 2.38% 21.38% 0.00%

Growth

Metric ALC RMD Medical Instruments & Supplies median
Revenue growth (TTM) 8.34% 9.85% 9.20%
EPS growth (last fiscal year) (3.41%) 9.67% —
Revenue growth, 5-year CAGR 8.77% 12.08% 9.48%
Net income growth, 5-year CAGR 0.00% 26.27% 0.00%

Health

Metric ALC RMD Medical Instruments & Supplies median
Debt to equity 0.22 0.06 0.08
Current ratio 2.09 3.10 2.49
Net debt to EBITDA 1.23 (0.50) 0.83

Dividend

Metric ALC RMD Medical Instruments & Supplies median
Dividend yield 0.36% 1.06% 0.99%
Payout ratio 0.32 0.29 0.00

Size

Metric ALC RMD Medical Instruments & Supplies median
Market cap 30.92b 31.91b 938.39m

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