ALC vs. CAH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALC and CAH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ALC’s market capitalization stands at 43.42 billion USD, while CAH’s is 39.36 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.70 for ALC and 0.68 for CAH, both stocks show similar sensitivity to overall market movements.
| Symbol | ALC | CAH |
|---|---|---|
| Company Name | Alcon Inc. | Cardinal Health, Inc. |
| Country | CH | US |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Instruments & Supplies | Medical - Distribution |
| CEO | David J. Endicott | Jason M. Hollar |
| Price | 87.78 USD | 164.93 USD |
| Market Cap | 43.42 billion USD | 39.36 billion USD |
| Beta | 0.70 | 0.68 |
| Exchange | NYSE | NYSE |
| IPO Date | April 9, 2019 | August 4, 1983 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALC and CAH by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ALC
6.95%
Medical - Instruments & Supplies Industry
- Max
- 26.65%
- Q3
- 13.00%
- Median
- 1.08%
- Q1
- -8.11%
- Min
- -38.20%
ALC’s Return on Equity of 6.95% is on par with the norm for the Medical - Instruments & Supplies industry, indicating its profitability relative to shareholder equity is typical for the sector.
CAH
-50.14%
Medical - Distribution Industry
- Max
- 12.20%
- Q3
- 12.03%
- Median
- -50.14%
- Q1
- -62.68%
- Min
- -132.73%
CAH has a negative Return on Equity of -50.14%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Return on Invested Capital
ALC
4.39%
Medical - Instruments & Supplies Industry
- Max
- 20.14%
- Q3
- 7.36%
- Median
- 1.97%
- Q1
- -6.22%
- Min
- -20.00%
ALC’s Return on Invested Capital of 4.39% is in line with the norm for the Medical - Instruments & Supplies industry, reflecting a standard level of efficiency in generating profits from its capital base.
CAH
12.79%
Medical - Distribution Industry
- Max
- 26.59%
- Q3
- 11.51%
- Median
- 7.70%
- Q1
- -0.02%
- Min
- -5.86%
In the upper quartile for the Medical - Distribution industry, CAH’s Return on Invested Capital of 12.79% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ALC
11.27%
Medical - Instruments & Supplies Industry
- Max
- 28.95%
- Q3
- 11.24%
- Median
- -2.83%
- Q1
- -12.85%
- Min
- -26.41%
A Net Profit Margin of 11.27% places ALC in the upper quartile for the Medical - Instruments & Supplies industry, signifying strong profitability and more effective cost management than most of its peers.
CAH
0.70%
Medical - Distribution Industry
- Max
- 3.21%
- Q3
- 2.07%
- Median
- 0.70%
- Q1
- -1.43%
- Min
- -6.29%
CAH’s Net Profit Margin of 0.70% is aligned with the median group of its peers in the Medical - Distribution industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ALC
15.22%
Medical - Instruments & Supplies Industry
- Max
- 32.10%
- Q3
- 16.03%
- Median
- 2.28%
- Q1
- -7.96%
- Min
- -26.84%
ALC’s Operating Profit Margin of 15.22% is around the midpoint for the Medical - Instruments & Supplies industry, indicating that its efficiency in managing core business operations is typical for the sector.
CAH
1.07%
Medical - Distribution Industry
- Max
- 5.22%
- Q3
- 3.23%
- Median
- 1.07%
- Q1
- -0.39%
- Min
- -4.51%
CAH’s Operating Profit Margin of 1.07% is around the midpoint for the Medical - Distribution industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ALC | CAH |
|---|---|---|
| Return on Equity (TTM) | 6.95% | -50.14% |
| Return on Assets (TTM) | 3.61% | 3.12% |
| Return on Invested Capital (TTM) | 4.39% | 12.79% |
| Net Profit Margin (TTM) | 11.27% | 0.70% |
| Operating Profit Margin (TTM) | 15.22% | 1.07% |
| Gross Profit Margin (TTM) | 55.55% | 3.50% |
Financial Strength
Current Ratio
ALC
2.70
Medical - Instruments & Supplies Industry
- Max
- 6.79
- Q3
- 4.57
- Median
- 2.64
- Q1
- 1.81
- Min
- 1.10
ALC’s Current Ratio of 2.70 aligns with the median group of the Medical - Instruments & Supplies industry, indicating that its short-term liquidity is in line with its sector peers.
CAH
0.94
Medical - Distribution Industry
- Max
- 1.38
- Q3
- 1.26
- Median
- 1.13
- Q1
- 0.92
- Min
- 0.87
CAH’s Current Ratio of 0.94 aligns with the median group of the Medical - Distribution industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ALC
0.24
Medical - Instruments & Supplies Industry
- Max
- 1.46
- Q3
- 0.74
- Median
- 0.41
- Q1
- 0.16
- Min
- 0.03
ALC’s Debt-to-Equity Ratio of 0.24 is typical for the Medical - Instruments & Supplies industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
CAH
-2.60
Medical - Distribution Industry
- Max
- 0.97
- Q3
- 0.97
- Median
- 0.65
- Q1
- 0.04
- Min
- 0.03
CAH has a Debt-to-Equity Ratio of -2.60, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
Interest Coverage Ratio
ALC
7.72
Medical - Instruments & Supplies Industry
- Max
- 25.04
- Q3
- 8.80
- Median
- 3.66
- Q1
- -3.85
- Min
- -11.93
ALC’s Interest Coverage Ratio of 7.72 is positioned comfortably within the norm for the Medical - Instruments & Supplies industry, indicating a standard and healthy capacity to cover its interest payments.
CAH
15.45
Medical - Distribution Industry
- Max
- 25.45
- Q3
- 12.43
- Median
- 7.07
- Q1
- 1.82
- Min
- -1.21
CAH’s Interest Coverage Ratio of 15.45 is in the upper quartile for the Medical - Distribution industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ALC | CAH |
|---|---|---|
| Current Ratio (TTM) | 2.70 | 0.94 |
| Quick Ratio (TTM) | 1.66 | 0.50 |
| Debt-to-Equity Ratio (TTM) | 0.24 | -2.60 |
| Debt-to-Asset Ratio (TTM) | 0.17 | 0.15 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.54 | 1.55 |
| Interest Coverage Ratio (TTM) | 7.72 | 15.45 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALC and CAH. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ALC
0.38%
Medical - Instruments & Supplies Industry
- Max
- 4.02%
- Q3
- 0.38%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.38%, ALC offers a more attractive income stream than most of its peers in the Medical - Instruments & Supplies industry, signaling a strong commitment to shareholder returns.
CAH
1.23%
Medical - Distribution Industry
- Max
- 1.21%
- Q3
- 0.56%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
CAH’s Dividend Yield of 1.23% is exceptionally high, placing it well above the typical range for the Medical - Distribution industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio
ALC
11.23%
Medical - Instruments & Supplies Industry
- Max
- 76.77%
- Q3
- 11.37%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALC’s Dividend Payout Ratio of 11.23% is within the typical range for the Medical - Instruments & Supplies industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
CAH
31.84%
Medical - Distribution Industry
- Max
- 31.84%
- Q3
- 21.47%
- Median
- 5.24%
- Q1
- 0.00%
- Min
- 0.00%
CAH’s Dividend Payout Ratio of 31.84% is in the upper quartile for the Medical - Distribution industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ALC | CAH |
|---|---|---|
| Dividend Yield (TTM) | 0.38% | 1.23% |
| Dividend Payout Ratio (TTM) | 11.23% | 31.84% |
Valuation
Price-to-Earnings Ratio
ALC
38.80
Medical - Instruments & Supplies Industry
- Max
- 45.65
- Q3
- 44.10
- Median
- 35.47
- Q1
- 29.60
- Min
- 21.65
ALC’s P/E Ratio of 38.80 is within the middle range for the Medical - Instruments & Supplies industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
CAH
25.41
Medical - Distribution Industry
- Max
- 34.27
- Q3
- 27.58
- Median
- 25.75
- Q1
- 22.28
- Min
- 18.73
CAH’s P/E Ratio of 25.41 is within the middle range for the Medical - Distribution industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ALC
2.54
Medical - Instruments & Supplies Industry
- Max
- 5.80
- Q3
- 3.68
- Median
- 2.56
- Q1
- 1.87
- Min
- 0.22
ALC’s Forward PEG Ratio of 2.54 is within the middle range of its peers in the Medical - Instruments & Supplies industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
CAH
1.88
Medical - Distribution Industry
- Max
- 3.40
- Q3
- 2.79
- Median
- 2.36
- Q1
- 2.08
- Min
- 1.94
CAH’s Forward PEG Ratio of 1.88 is below the typical range for the Medical - Distribution industry. This is a strong indicator that the stock may be undervalued, as its price appears low given its future growth prospects.
Price-to-Sales Ratio
ALC
4.37
Medical - Instruments & Supplies Industry
- Max
- 12.87
- Q3
- 6.95
- Median
- 3.45
- Q1
- 2.24
- Min
- 0.71
ALC’s P/S Ratio of 4.37 aligns with the market consensus for the Medical - Instruments & Supplies industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
CAH
0.18
Medical - Distribution Industry
- Max
- 1.08
- Q3
- 0.89
- Median
- 0.25
- Q1
- 0.18
- Min
- 0.06
In the lower quartile for the Medical - Distribution industry, CAH’s P/S Ratio of 0.18 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
ALC
1.98
Medical - Instruments & Supplies Industry
- Max
- 9.60
- Q3
- 5.48
- Median
- 3.37
- Q1
- 1.95
- Min
- 0.65
ALC’s P/B Ratio of 1.98 is within the conventional range for the Medical - Instruments & Supplies industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
CAH
-13.43
Medical - Distribution Industry
- Max
- 8.13
- Q3
- 8.13
- Median
- 2.74
- Q1
- 2.19
- Min
- 1.20
CAH has a negative P/B Ratio of -13.43, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
Valuation at a Glance
| Symbol | ALC | CAH |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 38.80 | 25.41 |
| Forward PEG Ratio (TTM) | 2.54 | 1.88 |
| Price-to-Sales Ratio (P/S, TTM) | 4.37 | 0.18 |
| Price-to-Book Ratio (P/B, TTM) | 1.98 | -13.43 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 25.24 | 16.14 |
| EV-to-EBITDA (TTM) | 19.18 | 15.54 |
| EV-to-Sales (TTM) | 4.75 | 0.20 |