Alcon Inc. vs Smith & Nephew plc, two Medical Devices stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Smith & Nephew earns the wider margins, 12.9% operating against Alcon's 9.5%, and the better returns, 11.8% on equity against 3.3%, from a similar surgical-devices franchise, yet both trade at premium multiples, 41.6 and 46.8 times earnings, prices that assume margin repair neither has yet delivered. Both run debt-free with comfortable current ratios and hand back near-5% free-cash yields, which is the pair's redeeming feature: the cash arrives even while the income statements underperform their categories. Two respected surgical franchises priced for the operating leverage their managements keep promising; the free cash is what holders collect while they wait for it.
Comparison updated 2026-07-10.
| Metric | ALC | SNN |
|---|---|---|
| Price | $67.85 | $30.02 |
| Market cap | $33.6B | $26.0B |
| Sector | Medical Devices | Medical Devices |
| Stage | Mature | Mature |
| P/E | 46.8 | 41.6 |
| P/B | 1.52 | 4.92 |
| P/S | 3.45 | 4.22 |
| EV/EBITDA | 31.0 | 32.1 |
| Revenue growth | +5.3% | +4.3% |
| Gross margin | 53.5% | 68.0% |
| Operating margin | 9.5% | 12.9% |
| Net margin | 7.4% | 10.1% |
| Return on equity | 3.3% | 11.8% |
| Return on assets | 2.3% | 6.0% |
| Return on invested capital | 4.2% | 12.0% |
| FCF yield | 5.1% | 4.9% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 2.12 | 2.57 |
| Altman Z (solvency) | 2.58 | 4.86 |
| Piotroski F (quality) | 6 / 9 | 7 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.