Analyzing Alere (NYSE:ALR) & Koninklijke Philips N.V. (PHG)

Koninklijke Philips N.V. (NYSE: PHG) and Alere (NYSE:ALR) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Analyst Ratings

This is a breakdown of current ratings and target prices for Koninklijke Philips N.V. and Alere, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Koninklijke Philips N.V. 0 5 5 0 2.50
Alere 0 5 0 0 2.00

Koninklijke Philips N.V. currently has a consensus price target of $33.50, indicating a potential downside of 9.61%. Alere has a consensus price target of $48.00, indicating a potential downside of 3.30%. Given Alere’s higher possible upside, analysts plainly believe Alere is more favorable than Koninklijke Philips N.V..

Profitability

This table compares Koninklijke Philips N.V. and Alere’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Koninklijke Philips N.V. 6.39% 8.92% 3.85%
Alere -10.73% 4.54% 1.01%

Risk & Volatility

Koninklijke Philips N.V. has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Alere has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.

Valuation & Earnings

This table compares Koninklijke Philips N.V. and Alere’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Koninklijke Philips N.V. $29.39 billion 1.19 $3.74 billion $1.74 21.30
Alere $2.32 billion 1.87 $261.20 million ($2.45) -20.26

Koninklijke Philips N.V. has higher revenue and earnings than Alere. Alere is trading at a lower price-to-earnings ratio than Koninklijke Philips N.V., indicating that it is currently the more affordable of the two stocks.

Dividends

Koninklijke Philips N.V. pays an annual dividend of $0.73 per share and has a dividend yield of 2.0%. Alere does not pay a dividend. Koninklijke Philips N.V. pays out 42.0% of its earnings in the form of a dividend. Alere has increased its dividend for 4 consecutive years.

Insider & Institutional Ownership

7.2% of Koninklijke Philips N.V. shares are held by institutional investors. Comparatively, 90.1% of Alere shares are held by institutional investors. 3.7% of Alere shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Koninklijke Philips N.V. beats Alere on 10 of the 16 factors compared between the two stocks.

Koninklijke Philips N.V. Company Profile

Koninklijke Philips N.V. is a health technology company. The Company’s segments include Personal Health businesses, Diagnosis & Treatment businesses, Connected Care & Health Informatics businesses, and Lighting. The Company’s Personal Health businesses segment is engaged in the health continuum, delivering integrated, connected solutions that support healthier lifestyles and those living with chronic disease. The Company’s Diagnosis & Treatment businesses segment delivers precision medicine and treatment, and therapy. The Company’s Connected Care & Health Informatics businesses segment provides consumers, care givers and clinicians with digital solutions that facilitate care by enabling precision medicine and population health management. The Company’s Philips Lighting is engaged in the development, manufacture and application of lighting products, systems and services. The Company is the parent company of the Philips Group (Philips).

Alere Company Profile

Alere Inc. is a provider of health information through diagnostic tests. The Company’s segments include professional diagnostics, consumer diagnostics, and corporate and other. The professional diagnostics segment includes an array of diagnostic test products and other in vitro diagnostic tests marketed to medical professionals and laboratories for detection of diseases and conditions within its areas of focus. The consumer diagnostics segment consists primarily of manufacturing operations related to its role as the exclusive manufacturer of products for SPD Swiss Precision Diagnostics (SPD), its joint venture with The Procter & Gamble Company (P&G). The Company’s professional diagnostic solutions allow patients and their healthcare providers to work together to manage patients’ conditions over the continuum of care, from the hospital to home. The Company offers lines of drugs-of-abuse tests, reagent systems and laboratory testing options.

What are top analysts saying about Koninklijke Philips N.V.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Koninklijke Philips N.V. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit