WallStSmart

Alcon AG (ALC)vsYum! Brands Inc (YUM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alcon AG generates 25% more annual revenue ($10.63B vs $8.49B). YUM leads profitability with a 20.5% profit margin vs 7.7%. ALC appears more attractively valued with a PEG of 1.65. YUM earns a higher WallStSmart Score of 65/100 (C+).

ALC

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 4.5Value: 4.7Quality: 7.3
Piotroski: 4/9

YUM

Buy

65

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 4.0Quality: 4.5
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALCUndervalued (+13.9%)

Margin of Safety

+13.9%

Fair Value

$92.25

Current Price

$62.56

$29.69 discount

UndervaluedFair: $92.25Overvalued
YUMSignificantly Overvalued (-76.3%)

Margin of Safety

-76.3%

Fair Value

$90.20

Current Price

$151.95

$61.75 premium

UndervaluedFair: $90.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALC2 strengths · Avg: 9.5/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.249/10

Conservative balance sheet, low leverage

YUM4 strengths · Avg: 9.3/10
Operating MarginProfitability
31.0%10/10

Strong operational efficiency at 31.0%

EPS GrowthGrowth
72.2%10/10

Earnings expanding 72.2% YoY

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Revenue GrowthGrowth
15.2%8/10

15.2% revenue growth

Areas to Watch

ALC4 concerns · Avg: 3.5/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

P/E RatioValuation
38.3x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
3.7%3/10

ROE of 3.7% — below average capital efficiency

Profit MarginProfitability
7.7%3/10

7.7% margin — thin

YUM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

P/E RatioValuation
25.4x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ALC

The strongest argument for ALC centers on Price/Book, Debt/Equity.

Bull Case : YUM

The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.

Bear Case : ALC

The primary concerns for ALC are PEG Ratio, P/E Ratio, Return on Equity.

Bear Case : YUM

The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

ALC profiles as a value stock while YUM is a growth play — different risk/reward profiles.

ALC carries more volatility with a beta of 0.70 — expect wider price swings.

YUM is growing revenue faster at 15.2% — sustainability is the question.

ALC generates stronger free cash flow (489M), providing more financial flexibility.

Bottom Line

YUM scores higher overall (65/100 vs 49/100), backed by strong 20.5% margins and 15.2% revenue growth. Both earn "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.

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Yum! Brands Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.

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