Alcon AG (ALC)vsVertex Pharmaceuticals Inc (VRTX)
ALC
Alcon AG
$75.26
+1.37%
HEALTHCARE · Cap: $37.11B
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Vertex Pharmaceuticals Inc generates 15% more annual revenue ($12.00B vs $10.40B). VRTX leads profitability with a 32.9% profit margin vs 9.4%. ALC appears more attractively valued with a PEG of 1.70. VRTX earns a higher WallStSmart Score of 66/100 (B-).
ALC
Hold49
out of 100
Grade: D+
VRTX
Strong Buy66
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
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Reasonable price relative to book value
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
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
Moderate valuation
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ALC
The strongest argument for ALC centers on Debt/Equity, Price/Book.
Bull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
Bear Case : ALC
The primary concerns for ALC are PEG Ratio, P/E Ratio, Return on Equity.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
ALC profiles as a value stock while VRTX is a mature play — different risk/reward profiles.
ALC carries more volatility with a beta of 0.70 — expect wider price swings.
VRTX is growing revenue faster at 9.5% — sustainability is the question.
ALC generates stronger free cash flow (489M), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 49/100), backed by strong 32.9% 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 →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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