Medical - Instruments & Supplies
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ALC vs LLY
Revenue, margins, valuation, and 5-year total return — side by side.
Drug Manufacturers - General
ALC vs LLY — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Medical - Instruments & Supplies | Drug Manufacturers - General |
| Market Cap | $30.49B | $896.11B |
| Revenue (TTM) | $10.58B | $72.25B |
| Net Income (TTM) | $815M | $25.27B |
| Gross Margin | 54.9% | 83.5% |
| Operating Margin | 12.3% | 45.9% |
| Forward P/E | 18.1x | 26.3x |
| Total Debt | $5.25B | $42.50B |
| Cash & Equiv. | $1.53B | $7.16B |
ALC vs LLY — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Alcon Inc. (ALC) | 100 | 98.5 | -1.5% |
| Eli Lilly and Compa… (LLY) | 100 | 620.1 | +520.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ALC vs LLY
Each card shows where this stock fits in a portfolio — not just who wins on paper.
ALC is the clearest fit if your priority is sleep-well-at-night.
- Lower volatility, beta 0.68, Low D/E 23.8%, current ratio 2.12x
- Lower P/E (18.1x vs 26.3x)
LLY carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 11 yrs, beta 0.65, yield 0.6%
- Rev growth 44.7%, EPS growth 96.0%, 3Y rev CAGR 31.7%
- 12.0% 10Y total return vs ALC's 11.4%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 44.7% revenue growth vs ALC's 4.9% | |
| Value | Lower P/E (18.1x vs 26.3x) | |
| Quality / Margins | 35.0% margin vs ALC's 7.7% | |
| Stability / Safety | Beta 0.65 vs ALC's 0.68 | |
| Dividends | 0.6% yield, 11-year raise streak, vs ALC's 0.5% | |
| Momentum (1Y) | +27.0% vs ALC's -33.4% | |
| Efficiency (ROA) | 22.7% ROA vs ALC's 2.6%, ROIC 41.8% vs 4.0% |
ALC vs LLY — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
ALC vs LLY — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
LLY leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
LLY is the larger business by revenue, generating $72.2B annually — 6.8x ALC's $10.6B. LLY is the more profitable business, keeping 35.0% of every revenue dollar as net income compared to ALC's 7.7%. On growth, LLY holds the edge at +55.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $10.6B | $72.2B |
| EBITDAEarnings before interest/tax | $2.2B | $34.7B |
| Net IncomeAfter-tax profit | $815M | $25.3B |
| Free Cash FlowCash after capex | $1.7B | $13.6B |
| Gross MarginGross profit ÷ Revenue | +54.9% | +83.5% |
| Operating MarginEBIT ÷ Revenue | +12.3% | +45.9% |
| Net MarginNet income ÷ Revenue | +7.7% | +35.0% |
| FCF MarginFCF ÷ Revenue | +16.1% | +18.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +7.3% | +55.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -45.7% | +169.9% |
Valuation Metrics
ALC leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 31.6x trailing earnings, ALC trades at a 24% valuation discount to LLY's 41.3x P/E. On an enterprise value basis, ALC's 13.4x EV/EBITDA is more attractive than LLY's 29.8x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $30.5B | $896.1B |
| Enterprise ValueMkt cap + debt − cash | $34.2B | $931.5B |
| Trailing P/EPrice ÷ TTM EPS | 31.60x | 41.33x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.14x | 26.30x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.43x |
| EV / EBITDAEnterprise value multiple | 13.41x | 29.80x |
| Price / SalesMarket cap ÷ Revenue | 2.93x | 13.75x |
| Price / BookPrice ÷ Book value/share | 1.41x | 32.10x |
| Price / FCFMarket cap ÷ FCF | 17.65x | 99.88x |
Profitability & Efficiency
LLY leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
LLY delivers a 101.2% return on equity — every $100 of shareholder capital generates $101 in annual profit, vs $4 for ALC. ALC carries lower financial leverage with a 0.24x debt-to-equity ratio, signaling a more conservative balance sheet compared to LLY's 1.60x. On the Piotroski fundamental quality scale (0–9), LLY scores 8/9 vs ALC's 6/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +3.7% | +101.2% |
| ROA (TTM)Return on assets | +2.6% | +22.7% |
| ROICReturn on invested capital | +4.0% | +41.8% |
| ROCEReturn on capital employed | +4.8% | +46.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 8 |
| Debt / EquityFinancial leverage | 0.24x | 1.60x |
| Net DebtTotal debt minus cash | $3.7B | $35.3B |
| Cash & Equiv.Liquid assets | $1.5B | $7.2B |
| Total DebtShort + long-term debt | $5.2B | $42.5B |
| Interest CoverageEBIT ÷ Interest expense | 8.23x | 35.68x |
Total Returns (Dividends Reinvested)
LLY leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in LLY five years ago would be worth $49,927 today (with dividends reinvested), compared to $9,434 for ALC. Over the past 12 months, LLY leads with a +27.0% total return vs ALC's -33.4%. The 3-year compound annual growth rate (CAGR) favors LLY at 30.6% vs ALC's -5.0% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -18.6% | -12.0% |
| 1-Year ReturnPast 12 months | -33.4% | +27.0% |
| 3-Year ReturnCumulative with dividends | -14.1% | +123.0% |
| 5-Year ReturnCumulative with dividends | -5.7% | +399.3% |
| 10-Year ReturnCumulative with dividends | +11.4% | +1202.6% |
| CAGR (3Y)Annualised 3-year return | -5.0% | +30.6% |
Risk & Volatility
LLY leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
LLY is the less volatile stock with a 0.65 beta — it tends to amplify market swings less than ALC's 0.68 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. LLY currently trades 83.6% from its 52-week high vs ALC's 64.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.68x | 0.65x |
| 52-Week HighHighest price in past year | $97.14 | $1133.95 |
| 52-Week LowLowest price in past year | $62.40 | $623.78 |
| % of 52W HighCurrent price vs 52-week peak | +64.4% | +83.6% |
| RSI (14)Momentum oscillator 0–100 | 23.9 | 58.4 |
| Avg Volume (50D)Average daily shares traded | 1.6M | 2.6M |
Analyst Outlook
LLY leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ALC as "Buy" and LLY as "Buy". Consensus price targets imply 38.3% upside for ALC (target: $87) vs 33.0% for LLY (target: $1261). For income investors, LLY offers the higher dividend yield at 0.63% vs ALC's 0.53%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $86.52 | $1261.11 |
| # AnalystsCovering analysts | 26 | 45 |
| Dividend YieldAnnual dividend ÷ price | +0.5% | +0.6% |
| Dividend StreakConsecutive years of raises | 5 | 11 |
| Dividend / ShareAnnual DPS | $0.33 | $6.00 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.4% | +0.5% |
LLY leads in 5 of 6 categories (Income & Cash Flow, Profitability & Efficiency). ALC leads in 1 (Valuation Metrics).
ALC vs LLY: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ALC or LLY a better buy right now?
For growth investors, Eli Lilly and Company (LLY) is the stronger pick with 44.
7% revenue growth year-over-year, versus 4. 9% for Alcon Inc. (ALC). Alcon Inc. (ALC) offers the better valuation at 31. 6x trailing P/E (18. 1x forward), making it the more compelling value choice. Analysts rate Alcon Inc. (ALC) a "Buy" — based on 26 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ALC or LLY?
On trailing P/E, Alcon Inc.
(ALC) is the cheapest at 31. 6x versus Eli Lilly and Company at 41. 3x. On forward P/E, Alcon Inc. is actually cheaper at 18. 1x.
03Which is the better long-term investment — ALC or LLY?
Over the past 5 years, Eli Lilly and Company (LLY) delivered a total return of +399.
3%, compared to -5. 7% for Alcon Inc. (ALC). Over 10 years, the gap is even starker: LLY returned +1203% versus ALC's +11. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ALC or LLY?
By beta (market sensitivity over 5 years), Eli Lilly and Company (LLY) is the lower-risk stock at 0.
65β versus Alcon Inc. 's 0. 68β — meaning ALC is approximately 4% more volatile than LLY relative to the S&P 500. On balance sheet safety, Alcon Inc. (ALC) carries a lower debt/equity ratio of 24% versus 160% for Eli Lilly and Company — giving it more financial flexibility in a downturn.
05Which is growing faster — ALC or LLY?
By revenue growth (latest reported year), Eli Lilly and Company (LLY) is pulling ahead at 44.
7% versus 4. 9% for Alcon Inc. (ALC). On earnings-per-share growth, the picture is similar: Eli Lilly and Company grew EPS 96. 0% year-over-year, compared to -3. 4% for Alcon Inc.. Over a 3-year CAGR, LLY leads at 31. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — ALC or LLY?
Eli Lilly and Company (LLY) is the more profitable company, earning 31.
7% net margin versus 9. 4% for Alcon Inc. — meaning it keeps 31. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LLY leads at 45. 6% versus 13. 1% for ALC. At the gross margin level — before operating expenses — LLY leads at 83. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is ALC or LLY more undervalued right now?
On forward earnings alone, Alcon Inc.
(ALC) trades at 18. 1x forward P/E versus 26. 3x for Eli Lilly and Company — 8. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ALC: 38. 3% to $86. 52.
08Which pays a better dividend — ALC or LLY?
All stocks in this comparison pay dividends.
Eli Lilly and Company (LLY) offers the highest yield at 0. 6%, versus 0. 5% for Alcon Inc. (ALC).
09Is ALC or LLY better for a retirement portfolio?
For long-horizon retirement investors, Eli Lilly and Company (LLY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
65), 0. 6% yield, +1203% 10Y return). Both have compounded well over 10 years (LLY: +1203%, ALC: +11. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between ALC and LLY?
Both stocks operate in the Healthcare sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: ALC is a mid-cap quality compounder stock; LLY is a large-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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