Koninklijke Philips (NYSE:PHG – Get Rating) and GE HealthCare Technologies (NASDAQ:GEHC – Get Rating) are both large-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.
Profitability
This table compares Koninklijke Philips and GE HealthCare Technologies’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Koninklijke Philips | -6.09% | 7.50% | 3.46% |
GE HealthCare Technologies | N/A | N/A | N/A |
Insider and Institutional Ownership
10.2% of Koninklijke Philips shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Koninklijke Philips | 4 | 5 | 2 | 0 | 1.82 |
GE HealthCare Technologies | 0 | 1 | 1 | 0 | 2.50 |
Koninklijke Philips presently has a consensus target price of $18.56, suggesting a potential upside of 10.62%. Given Koninklijke Philips’ higher probable upside, equities analysts plainly believe Koninklijke Philips is more favorable than GE HealthCare Technologies.
Earnings & Valuation
This table compares Koninklijke Philips and GE HealthCare Technologies’ gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Koninklijke Philips | $20.30 billion | 0.74 | $3.93 billion | ($1.27) | -13.21 |
GE HealthCare Technologies | $17.59 billion | 1.78 | $2.25 billion | N/A | N/A |
Koninklijke Philips has higher revenue and earnings than GE HealthCare Technologies.
Summary
Koninklijke Philips beats GE HealthCare Technologies on 7 of the 10 factors compared between the two stocks.
About Koninklijke Philips
Koninklijke Philips N.V. operates as a health technology company in North America and internationally. It operates through Diagnosis & Treatment Businesses, Connected Care Businesses, and Personal Health Businesses segments. The company provides diagnostic imaging solutions, includes magnetic resonance imaging, computed tomography (CT) systems, X-ray systems, and detector-based spectral CT solutions, as well as molecular and hybrid imaging solutions for nuclear medicine; integrated interventional systems; echography solutions focused on diagnosis, treatment planning and guidance for cardiology, general imaging, obstetrics/gynecology, and point-of-care applications; proprietary software to enable diagnostics and intervention; and enterprise diagnostic informatics products and services. It also offers acute patient management solutions; emergency care solutions; sleep and respiratory care solutions; and electronic medical record and care management solutions. In addition, the company provides power toothbrushes, brush heads, and interdental cleaning and teeth whitening products; infant feeding and digital parental solutions; and male grooming and beauty products and solutions. It has a strategic collaboration with Ibex Medical Analytics Ltd. to jointly promote the digital pathology and AI solutions to hospitals, health networks, and pathology laboratories worldwide, as well as a strategic partnership agreement with NICO.LAB. The company was formerly known as Koninklijke Philips Electronics N.V. and changed its name to Koninklijke Philips N.V. in May 2013. Koninklijke Philips N.V. was founded in 1891 and is headquartered in Amsterdam, the Netherlands.
About GE HealthCare Technologies
GE HealthCare Technologies Inc. provides medical technology, pharmaceutical diagnostics, and digital solutions in the United States. The company is based in Chicago, Illinois.
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