ALC vs. GSK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALC and GSK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
GSK’s market capitalization of 78.18 billion USD is significantly greater than ALC’s 43.42 billion USD, highlighting its more substantial market valuation.
ALC’s beta of 0.70 points to significantly higher volatility compared to GSK (beta: 0.27), suggesting ALC has greater potential for both gains and losses relative to market movements.
GSK is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. ALC, on the other hand, is a domestic entity.
| Symbol | ALC | GSK |
|---|---|---|
| Company Name | Alcon Inc. | GSK plc |
| Country | CH | GB |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Instruments & Supplies | Drug Manufacturers - General |
| CEO | David J. Endicott | Emma Natasha Walmsley |
| Price | 87.78 USD | 38.18 USD |
| Market Cap | 43.42 billion USD | 78.18 billion USD |
| Beta | 0.70 | 0.27 |
| Exchange | NYSE | NYSE |
| IPO Date | April 9, 2019 | March 28, 1980 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of ALC and GSK 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.
GSK
22.44%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 76.92%
- Median
- 30.71%
- Q1
- 8.97%
- Min
- -14.85%
GSK’s Return on Equity of 22.44% is on par with the norm for the Drug Manufacturers - General industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
GSK
10.47%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
GSK’s Return on Invested Capital of 10.47% is in line with the norm for the Drug Manufacturers - General industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
GSK
10.00%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
Falling into the lower quartile for the Drug Manufacturers - General industry, GSK’s Net Profit Margin of 10.00% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
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.
GSK
16.13%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
GSK’s Operating Profit Margin of 16.13% is in the lower quartile for the Drug Manufacturers - General industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | ALC | GSK |
|---|---|---|
| Return on Equity (TTM) | 6.95% | 22.44% |
| Return on Assets (TTM) | 3.61% | 5.19% |
| Return on Invested Capital (TTM) | 4.39% | 10.47% |
| Net Profit Margin (TTM) | 11.27% | 10.00% |
| Operating Profit Margin (TTM) | 15.22% | 16.13% |
| Gross Profit Margin (TTM) | 55.55% | 71.61% |
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.
GSK
0.87
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.37
- Median
- 1.26
- Q1
- 0.87
- Min
- 0.39
GSK’s Current Ratio of 0.87 aligns with the median group of the Drug Manufacturers - General 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.
GSK
1.30
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.44
- Median
- 0.86
- Q1
- 0.68
- Min
- 0.09
GSK’s Debt-to-Equity Ratio of 1.30 is typical for the Drug Manufacturers - General industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
GSK
7.65
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
GSK’s Interest Coverage Ratio of 7.65 is positioned comfortably within the norm for the Drug Manufacturers - General industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ALC | GSK |
|---|---|---|
| Current Ratio (TTM) | 2.70 | 0.87 |
| Quick Ratio (TTM) | 1.66 | 0.58 |
| Debt-to-Equity Ratio (TTM) | 0.24 | 1.30 |
| Debt-to-Asset Ratio (TTM) | 0.17 | 0.30 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.54 | 1.70 |
| Interest Coverage Ratio (TTM) | 7.72 | 7.65 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALC and GSK. 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.
GSK
4.10%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.10%
- Median
- 3.34%
- Q1
- 1.89%
- Min
- 0.00%
With a Dividend Yield of 4.10%, GSK offers a more attractive income stream than most of its peers in the Drug Manufacturers - General industry, signaling a strong commitment to shareholder returns.
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.
GSK
78.91%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 78.91%
- Median
- 60.27%
- Q1
- 43.74%
- Min
- 0.00%
GSK’s Dividend Payout Ratio of 78.91% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ALC | GSK |
|---|---|---|
| Dividend Yield (TTM) | 0.38% | 4.10% |
| Dividend Payout Ratio (TTM) | 11.23% | 78.91% |
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.
GSK
18.22
Drug Manufacturers - General Industry
- Max
- 27.96
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
GSK’s P/E Ratio of 18.22 is within the middle range for the Drug Manufacturers - General 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.
GSK
2.59
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
GSK’s Forward PEG Ratio of 2.59 is within the middle range of its peers in the Drug Manufacturers - General industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
GSK
1.80
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
In the lower quartile for the Drug Manufacturers - General industry, GSK’s P/S Ratio of 1.80 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.
GSK
4.06
Drug Manufacturers - General Industry
- Max
- 7.80
- Q3
- 7.80
- Median
- 5.30
- Q1
- 4.06
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
Valuation at a Glance
| Symbol | ALC | GSK |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 38.80 | 18.22 |
| Forward PEG Ratio (TTM) | 2.54 | 2.59 |
| Price-to-Sales Ratio (P/S, TTM) | 4.37 | 1.80 |
| Price-to-Book Ratio (P/B, TTM) | 1.98 | 4.06 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 25.24 | 15.61 |
| EV-to-EBITDA (TTM) | 19.18 | 8.60 |
| EV-to-Sales (TTM) | 4.75 | 2.25 |