Alcon (ALC) vs West Pharmaceutical Services, Inc. (WST)

Alcon and West Pharmaceutical Services, Inc. are both Medical Instruments & Supplies companies. Alcon is the larger, with a market value of $30.9B against $26.3B — 1.2× the size. West Pharmaceutical Services, Inc. trades at the lower P/E: 47.1× against 49.2×. West Pharmaceutical Services, Inc. grew revenue faster over the last twelve months: 12.4% against 8.34%. West Pharmaceutical Services, Inc. has the higher net margin (17.0% vs 5.92%) and the higher return on invested capital (15.4% vs 2.38%). Both pay a dividend; Alcon yields more (0.36% vs 0.14%). Across the 23 metrics below, West Pharmaceutical Services, Inc. leads on 13 and Alcon on 10.

Valuation

Metric ALC WST Medical Instruments & Supplies median
P/E 49.21 47.07 34.17
P/S 2.89 7.88 2.83
P/B 1.45 8.77 2.82
Price to free cash flow 19.68 60.56 25.69
EV/EBITDA 12.67 30.16 16.08
EV/Sales 3.19 7.81 3.06
Earnings yield 2.03% 2.12% (1.84%)
Free cash flow yield 5.08% 1.65% 0.17%

Profitability

Metric ALC WST Medical Instruments & Supplies median
Gross margin 56.85% 36.79% 54.62%
Operating margin 8.73% 20.45% 1.64%
Net margin 5.92% 16.98% 0.00%
Free cash flow margin 14.68% 13.13% 1.61%
Return on equity 2.94% 19.09% 0.00%
Return on assets 2.06% 14.07% 0.00%
Return on invested capital 2.38% 15.42% 0.00%

Growth

Metric ALC WST Medical Instruments & Supplies median
Revenue growth (TTM) 8.34% 12.38% 9.20%
EPS growth (last fiscal year) (3.41%) 1.49% —
Revenue growth, 5-year CAGR 8.77% 7.44% 9.48%
Net income growth, 5-year CAGR 0.00% 7.36% 0.00%

Health

Metric ALC WST Medical Instruments & Supplies median
Debt to equity 0.22 0.07 0.08
Current ratio 2.09 2.82 2.49
Net debt to EBITDA 1.23 (0.78) 0.83

Dividend

Metric ALC WST Medical Instruments & Supplies median
Dividend yield 0.36% 0.14% 0.99%
Payout ratio 0.32 0.11 0.00

Size

Metric ALC WST Medical Instruments & Supplies median
Market cap 30.92b 26.29b 938.39m

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