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 $36.9B against $27.3B — 1.3× the size. West Pharmaceutical Services, Inc. trades at the lower P/E: 43.8× against 58.4×. West Pharmaceutical Services, Inc. grew revenue faster over the last twelve months: 12.6% against 8.34%. West Pharmaceutical Services, Inc. has the higher net margin (18.8% vs 5.92%) and the higher return on invested capital (18.0% vs 2.38%). Both pay a dividend; Alcon yields more (0.46% vs 0.22%). 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 58.36 43.81 30.28
P/S 3.43 8.14 2.49
P/B 1.72 9.32 2.34
Price to free cash flow 23.34 61.53 23.49
EV/EBITDA 14.80 28.41 14.87
EV/Sales 3.73 8.07 2.75
Earnings yield 1.71% 2.28% 0.00%
Free cash flow yield 4.28% 1.63% 0.59%

Profitability

Metric ALC WST Medical Instruments & Supplies median
Gross margin 56.85% 37.59% 53.60%
Operating margin 8.73% 22.97% 1.97%
Net margin 5.92% 18.81% 0.00%
Free cash flow margin 14.68% 13.35% 2.36%
Return on equity 2.94% 21.23% 0.00%
Return on assets 2.06% 15.65% 0.00%
Return on invested capital 2.38% 18.01% 0.13%

Growth

Metric ALC WST Medical Instruments & Supplies median
Revenue growth (TTM) 8.34% 12.55% 8.97%
EPS growth (last fiscal year) (3.41%) 1.49% 6.51%
Revenue growth, 5-year CAGR 8.77% 7.44% 8.85%
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 0.10
Current ratio 2.09 2.82 2.47
Net debt to EBITDA 1.23 (0.78) 0.97

Dividend

Metric ALC WST Medical Instruments & Supplies median
Dividend yield 0.46% 0.22% 1.02%
Payout ratio 0.27 0.10 0.27

Size

Metric ALC WST Medical Instruments & Supplies median
Market cap 36.90b 27.34b 1.71b

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