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ALC vs MRK

ALC
Alcon Inc.
NEUTRAL
Price
$80.29
Market Cap
$39.59B
Sector
Healthcare
AI Confidence
72%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
ALC
38.6
MRK
16.66
Forward P/E
ALC
23.5
MRK
12.42
P/B Ratio
ALC
1.79
MRK
5.7
P/S Ratio
ALC
3.89
MRK
4.61
EV/EBITDA
ALC
17.2
MRK
11.46

Profitability

Gross Margin
ALC
55.57%
MRK
77.21%
Operating Margin
ALC
12.85%
MRK
32.77%
Profit Margin
ALC
10.28%
MRK
28.08%
ROE
ALC
4.82%
MRK
36.88%
ROA
ALC
2.62%
MRK
12.04%

Growth

Revenue Growth
ALC
6.5%
MRK
5.0%
Earnings Growth
ALC
-9.4%
MRK
-19.3%

Financial Health

Debt/Equity
ALC
0.24
MRK
0.96
Current Ratio
ALC
2.12
MRK
1.54
Quick Ratio
ALC
1.15
MRK
0.96

Dividends

Dividend Yield
ALC
0.41%
MRK
2.83%
Payout Ratio
ALC
16.22%
MRK
45.05%

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
MRK NEUTRAL

MRK 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 (28.1% margin)
Strong ROE of 36.9%
Risks
Premium vs Graham Number ($59.01)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

ALC vs MRK: Head-to-Head Comparison

This page compares Alcon Inc. (ALC) and Merck & Co., Inc. (MRK) 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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