ALC vs. WAT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALC and WAT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ALC’s market capitalization of 43.42 billion USD is substantially larger than WAT’s 20.84 billion USD, indicating a significant difference in their market valuations.
WAT carries a higher beta at 1.12, indicating it’s more sensitive to market moves, while ALC (beta: 0.70) exhibits greater stability.
| Symbol | ALC | WAT |
|---|---|---|
| Company Name | Alcon Inc. | Waters Corporation |
| Country | CH | US |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Instruments & Supplies | Medical - Diagnostics & Research |
| CEO | David J. Endicott | Udit Batra |
| Price | 87.78 USD | 350.22 USD |
| Market Cap | 43.42 billion USD | 20.84 billion USD |
| Beta | 0.70 | 1.12 |
| Exchange | NYSE | NYSE |
| IPO Date | April 9, 2019 | November 17, 1995 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALC and WAT 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.
WAT
38.61%
Medical - Diagnostics & Research Industry
- Max
- 57.35%
- Q3
- 18.17%
- Median
- 2.69%
- Q1
- -16.72%
- Min
- -48.78%
In the upper quartile for the Medical - Diagnostics & Research industry, WAT’s Return on Equity of 38.61% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
WAT
18.90%
Medical - Diagnostics & Research Industry
- Max
- 42.99%
- Q3
- 11.55%
- Median
- 3.02%
- Q1
- -11.49%
- Min
- -40.79%
In the upper quartile for the Medical - Diagnostics & Research industry, WAT’s Return on Invested Capital of 18.90% 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.
WAT
22.02%
Medical - Diagnostics & Research Industry
- Max
- 22.76%
- Q3
- 15.19%
- Median
- 1.64%
- Q1
- -22.25%
- Min
- -78.24%
A Net Profit Margin of 22.02% places WAT in the upper quartile for the Medical - Diagnostics & Research industry, signifying strong profitability and more effective cost management than most of its peers.
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.
WAT
28.37%
Medical - Diagnostics & Research Industry
- Max
- 36.06%
- Q3
- 20.26%
- Median
- 6.15%
- Q1
- -21.89%
- Min
- -82.21%
An Operating Profit Margin of 28.37% places WAT in the upper quartile for the Medical - Diagnostics & Research industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ALC | WAT |
|---|---|---|
| Return on Equity (TTM) | 6.95% | 38.61% |
| Return on Assets (TTM) | 3.61% | 14.31% |
| Return on Invested Capital (TTM) | 4.39% | 18.90% |
| Net Profit Margin (TTM) | 11.27% | 22.02% |
| Operating Profit Margin (TTM) | 15.22% | 28.37% |
| Gross Profit Margin (TTM) | 55.55% | 62.08% |
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.
WAT
1.81
Medical - Diagnostics & Research Industry
- Max
- 6.91
- Q3
- 4.11
- Median
- 2.46
- Q1
- 1.44
- Min
- 0.73
WAT’s Current Ratio of 1.81 aligns with the median group of the Medical - Diagnostics & Research 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.
WAT
0.78
Medical - Diagnostics & Research Industry
- Max
- 1.10
- Q3
- 0.82
- Median
- 0.39
- Q1
- 0.21
- Min
- 0.01
WAT’s Debt-to-Equity Ratio of 0.78 is typical for the Medical - Diagnostics & Research 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.
WAT
16.97
Medical - Diagnostics & Research Industry
- Max
- 37.07
- Q3
- 5.62
- Median
- 1.76
- Q1
- -38.78
- Min
- -57.46
WAT’s Interest Coverage Ratio of 16.97 is in the upper quartile for the Medical - Diagnostics & Research industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ALC | WAT |
|---|---|---|
| Current Ratio (TTM) | 2.70 | 1.81 |
| Quick Ratio (TTM) | 1.66 | 1.28 |
| Debt-to-Equity Ratio (TTM) | 0.24 | 0.78 |
| Debt-to-Asset Ratio (TTM) | 0.17 | 0.33 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.54 | 1.16 |
| Interest Coverage Ratio (TTM) | 7.72 | 16.97 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALC and WAT. 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.
WAT
0.00%
Medical - Diagnostics & Research Industry
- Max
- 2.76%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WAT currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
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.
WAT
0.00%
Medical - Diagnostics & Research Industry
- Max
- 37.46%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
WAT has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | ALC | WAT |
|---|---|---|
| Dividend Yield (TTM) | 0.38% | 0.00% |
| Dividend Payout Ratio (TTM) | 11.23% | 0.00% |
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.
WAT
31.68
Medical - Diagnostics & Research Industry
- Max
- 48.28
- Q3
- 44.64
- Median
- 29.13
- Q1
- 22.34
- Min
- 15.59
WAT’s P/E Ratio of 31.68 is within the middle range for the Medical - Diagnostics & Research 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.
WAT
3.23
Medical - Diagnostics & Research Industry
- Max
- 4.18
- Q3
- 3.64
- Median
- 2.40
- Q1
- 0.57
- Min
- 0.04
WAT’s Forward PEG Ratio of 3.23 is within the middle range of its peers in the Medical - Diagnostics & Research 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.
WAT
6.99
Medical - Diagnostics & Research Industry
- Max
- 12.53
- Q3
- 6.19
- Median
- 3.58
- Q1
- 1.95
- Min
- 0.58
WAT’s P/S Ratio of 6.99 is in the upper echelon for the Medical - Diagnostics & Research industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
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.
WAT
10.61
Medical - Diagnostics & Research Industry
- Max
- 10.67
- Q3
- 5.74
- Median
- 2.95
- Q1
- 1.30
- Min
- 0.39
The P/B Ratio is often not a primary valuation metric for the Medical - Diagnostics & Research industry.
Valuation at a Glance
| Symbol | ALC | WAT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 38.80 | 31.68 |
| Forward PEG Ratio (TTM) | 2.54 | 3.23 |
| Price-to-Sales Ratio (P/S, TTM) | 4.37 | 6.99 |
| Price-to-Book Ratio (P/B, TTM) | 1.98 | 10.61 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 25.24 | 33.66 |
| EV-to-EBITDA (TTM) | 19.18 | 22.10 |
| EV-to-Sales (TTM) | 4.75 | 7.37 |