Alcon AG (ALC)vsKLA Corporation (KLAC)
ALC
Alcon AG
$75.26
+1.37%
HEALTHCARE · Cap: $37.11B
KLAC
KLA Corporation
$1,543.82
-1.43%
TECHNOLOGY · Cap: $205.79B
Smart Verdict
WallStSmart Research — data-driven comparison
KLA Corporation generates 23% more annual revenue ($12.74B vs $10.40B). KLAC leads profitability with a 35.8% profit margin vs 9.4%. KLAC appears more attractively valued with a PEG of 1.66. KLAC earns a higher WallStSmart Score of 70/100 (B).
ALC
Hold49
out of 100
Grade: D+
KLAC
Strong Buy70
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-489.8%
Fair Value
$13.46
Current Price
$75.26
$61.80 premium
Margin of Safety
+3.9%
Fair Value
$1605.71
Current Price
$1543.82
$61.89 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 36 of every $100 in revenue as profit
Strong operational efficiency at 41.3%
Earnings expanding 40.9% YoY
Generating 1.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 4.5% — below average capital efficiency
Earnings declined 22.2%
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 37.0x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ALC
The strongest argument for ALC centers on Debt/Equity, Price/Book.
Bull Case : KLAC
The strongest argument for KLAC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 35.8% and operating margin at 41.3%.
Bear Case : ALC
The primary concerns for ALC are PEG Ratio, P/E Ratio, Return on Equity.
Bear Case : KLAC
The primary concerns for KLAC are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 45.6x leaves little room for execution misses.
Key Dynamics to Monitor
ALC profiles as a value stock while KLAC is a mature play — different risk/reward profiles.
KLAC carries more volatility with a beta of 1.45 — expect wider price swings.
ALC is growing revenue faster at 8.6% — sustainability is the question.
KLAC generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
KLAC scores higher overall (70/100 vs 49/100), backed by strong 35.8% margins. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Alcon AG
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
Alcon, Inc., an eye care company, researches, develops, manufactures, distributes and sells eye care products for eye care professionals and their patients around the world. The company is headquartered in Geneva, Switzerland.
Visit Website →KLA Corporation
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
KLA Corporation is a capital equipment company based in Milpitas, California. It supplies process control and yield management systems for the semiconductor industry and other related nanoelectronics industries. The company's products and services are intended for all phases of wafer, reticle, integrated circuit (IC) and packaging production, from research and development to final volume manufacturing.
Visit Website →Compare with Other MEDICAL INSTRUMENTS & SUPPLIES Stocks
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