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ALC vs JNJ

ALC
Alcon Inc.
NEUTRAL
Price
$80.29
Market Cap
$39.59B
Sector
Healthcare
AI Confidence
72%
JNJ
Johnson & Johnson
NEUTRAL
Price
$244.85
Market Cap
$590.06B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
ALC
38.6
JNJ
22.22
Forward P/E
ALC
23.5
JNJ
19.48
P/B Ratio
ALC
1.79
JNJ
7.23
P/S Ratio
ALC
3.89
JNJ
6.26
EV/EBITDA
ALC
17.2
JNJ
18.27

Profitability

Gross Margin
ALC
55.57%
JNJ
68.08%
Operating Margin
ALC
12.85%
JNJ
23.97%
Profit Margin
ALC
10.28%
JNJ
28.46%
ROE
ALC
4.82%
JNJ
35.03%
ROA
ALC
2.62%
JNJ
8.68%

Growth

Revenue Growth
ALC
6.5%
JNJ
9.1%
Earnings Growth
ALC
-9.4%
JNJ
48.6%

Financial Health

Debt/Equity
ALC
0.24
JNJ
0.6
Current Ratio
ALC
2.12
JNJ
1.03
Quick Ratio
ALC
1.15
JNJ
0.69

Dividends

Dividend Yield
ALC
0.41%
JNJ
2.13%
Payout Ratio
ALC
16.22%
JNJ
46.6%

AI Verdict

ALC NEUTRAL

Alcon Inc. (ALC) exhibits a weak Piotroski F-Score of 4/9, indicating marginal financial health, while the absence of an Altman Z-Score prevents a full distress risk assessment. Despite solid revenue growth and strong gross margins, earnings are contracting year-over-year, and the stock trades at a high valuation (P/E 38.60 vs. sector average 212.00) with a weak technical trend. Analysts recommend a 'buy' with a $91.80 target, implying 14% upside, but this is at odds with deteriorating profitability and low insider sentiment. The Graham Number of $45.87 suggests significant overvaluation, though sector dynamics and growth expectations may justify some premium.

Strengths
Solid revenue growth of 6.5% YoY, outpacing some peers
High gross margin of 55.57%, reflecting pricing power and efficient manufacturing
Strong balance sheet with low debt/equity (0.24) and healthy current ratio (2.12)
Risks
Weak Piotroski F-Score (4/9) signals deteriorating fundamentals and poor profitability trends
Earnings under pressure with YoY EPS growth at -2.5% and operating margin decline
High P/E ratio (38.60) vs. Graham fair value of $45.87 implies substantial overvaluation
JNJ NEUTRAL

JNJ shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (28.5% margin)
Strong ROE of 35.0%
Risks
Premium vs Graham Number ($91.63)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

ALC vs JNJ: Head-to-Head Comparison

This page compares Alcon Inc. (ALC) and Johnson & Johnson (JNJ) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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