WallStSmart

Alcon AG (ALC)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 2837% more annual revenue ($305.45B vs $10.40B). MSFT leads profitability with a 39.0% profit margin vs 9.4%. MSFT appears more attractively valued with a PEG of 1.25. MSFT earns a higher WallStSmart Score of 74/100 (B).

ALC

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 5.0Value: 7.3Quality: 7.3
Piotroski: 4/9

MSFT

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALCSignificantly Overvalued (-489.8%)

Margin of Safety

-489.8%

Fair Value

$13.46

Current Price

$75.26

$61.80 premium

UndervaluedFair: $13.46Overvalued
MSFTUndervalued (+50.1%)

Margin of Safety

+50.1%

Fair Value

$747.40

Current Price

$371.04

$376.36 discount

UndervaluedFair: $747.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALC2 strengths · Avg: 8.5/10
Debt/EquityHealth
0.249/10

Conservative balance sheet, low leverage

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

MSFT6 strengths · Avg: 9.7/10
Market CapQuality
$2.85T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.4%10/10

Every $100 of equity generates 34 in profit

Profit MarginProfitability
39.0%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
47.1%10/10

Strong operational efficiency at 47.1%

EPS GrowthGrowth
59.8%10/10

Earnings expanding 59.8% YoY

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

Areas to Watch

ALC4 concerns · Avg: 3.3/10
PEG RatioValuation
1.704/10

Expensive relative to growth rate

P/E RatioValuation
37.5x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
4.5%3/10

ROE of 4.5% — below average capital efficiency

EPS GrowthGrowth
-22.2%2/10

Earnings declined 22.2%

MSFT0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : ALC

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

Bull Case : MSFT

The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.0% and operating margin at 47.1%. Revenue growth of 16.7% demonstrates continued momentum.

Bear Case : ALC

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

Bear Case : MSFT

No major red flags identified for MSFT, but monitor valuation.

Key Dynamics to Monitor

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

MSFT carries more volatility with a beta of 1.11 — expect wider price swings.

MSFT is growing revenue faster at 16.7% — sustainability is the question.

MSFT generates stronger free cash flow (5.9B), providing more financial flexibility.

Bottom Line

MSFT scores higher overall (74/100 vs 49/100), backed by strong 39.0% margins and 16.7% revenue growth. 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.

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Microsoft Corporation

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.

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