Alcon (ALC) vs ResMed Inc. (RMD)

Alcon and ResMed Inc. are both Medical Instruments & Supplies companies. Alcon and ResMed Inc. are of similar size ($36.9B and $33.7B). ResMed Inc. trades at the lower P/E: 21.7× against 58.4×. ResMed Inc. grew revenue faster over the last twelve months: 9.04% against 8.34%. ResMed Inc. has the higher net margin (27.8% vs 5.92%) and the higher return on invested capital (22.8% vs 2.38%). Both pay a dividend; ResMed Inc. yields more (1.03% vs 0.46%). Across the 23 metrics below, ResMed Inc. leads on 19 and Alcon on 4.

Valuation

Metric ALC RMD Medical Instruments & Supplies median
P/E 58.36 21.69 30.28
P/S 3.43 5.96 2.49
P/B 1.72 5.74 2.34
Price to free cash flow 23.34 21.50 23.49
EV/EBITDA 14.80 15.66 14.87
EV/Sales 3.73 5.82 2.75
Earnings yield 1.71% 4.61% 0.00%
Free cash flow yield 4.28% 4.65% 0.59%

Profitability

Metric ALC RMD Medical Instruments & Supplies median
Gross margin 56.85% 61.13% 53.60%
Operating margin 8.73% 33.02% 1.97%
Net margin 5.92% 27.79% 0.00%
Free cash flow margin 14.68% 27.71% 2.36%
Return on equity 2.94% 26.40% 0.00%
Return on assets 2.06% 19.29% 0.00%
Return on invested capital 2.38% 22.81% 0.13%

Growth

Metric ALC RMD Medical Instruments & Supplies median
Revenue growth (TTM) 8.34% 9.04% 8.97%
EPS growth (last fiscal year) (3.41%) 9.67% 6.51%
Revenue growth, 5-year CAGR 8.77% 12.08% 8.85%
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 0.04 0.10
Current ratio 2.09 2.65 2.47
Net debt to EBITDA 1.23 (0.50) 0.97

Dividend

Metric ALC RMD Medical Instruments & Supplies median
Dividend yield 0.46% 1.03% 1.02%
Payout ratio 0.27 0.22 0.27

Size

Metric ALC RMD Medical Instruments & Supplies median
Market cap 36.90b 33.66b 1.71b

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