Alcon (ALC) vs ResMed Inc. (RMD)

Alcon and ResMed Inc. are both Medical Instruments & Supplies companies. Alcon and ResMed Inc. are of similar size ($34.1B and $32.1B). ResMed Inc. trades at the lower P/E: 22.8× against 50.5×. 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 (1.03% vs 0.53%). Across the 23 metrics below, ResMed Inc. leads on 17 and Alcon on 6.

Valuation

Metric ALC RMD Medical Instruments & Supplies median
P/E 50.52 22.85 33.75
P/S 2.97 6.15 2.52
P/B 1.49 5.28 2.48
Price to free cash flow 20.21 21.35 25.19
EV/EBITDA 12.97 15.82 14.62
EV/Sales 3.27 5.96 2.88
Earnings yield 1.98% 4.38% (2.67%)
Free cash flow yield 4.95% 4.68% 0.09%

Profitability

Metric ALC RMD Medical Instruments & Supplies median
Gross margin 56.85% 61.06% 54.29%
Operating margin 8.73% 33.37% 1.07%
Net margin 5.92% 26.94% (1.61%)
Free cash flow margin 14.68% 28.81% 1.08%
Return on equity 2.94% 24.27% (1.32%)
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% 8.85%
EPS growth (last fiscal year) (3.41%) 9.67% 8.65%
Revenue growth, 5-year CAGR 8.77% 12.08% 9.17%
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 0.10
Current ratio 2.09 3.10 2.48
Net debt to EBITDA 1.23 (0.50) 0.89

Dividend

Metric ALC RMD Medical Instruments & Supplies median
Dividend yield 0.53% 1.03% 1.11%
Payout ratio 0.27 0.24 0.27

Size

Metric ALC RMD Medical Instruments & Supplies median
Market cap 32.10b 34.07b 619.84m

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