Comparing Koninklijke Philips N.V. (NYSE:PHG) & PerkinElmer (PKI)
Koninklijke Philips N.V. (NYSE: PHG) and PerkinElmer (NYSE:PKI) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitabiliy, earnings and dividends.
Risk & Volatility
Koninklijke Philips N.V. has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, PerkinElmer has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.
Koninklijke Philips N.V. pays an annual dividend of $0.73 per share and has a dividend yield of 1.9%. PerkinElmer pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Koninklijke Philips N.V. pays out 42.0% of its earnings in the form of a dividend. PerkinElmer pays out 8.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Koninklijke Philips N.V. has increased its dividend for 4 consecutive years. Koninklijke Philips N.V. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Koninklijke Philips N.V. and PerkinElmer’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%|
Institutional & Insider Ownership
7.2% of Koninklijke Philips N.V. shares are held by institutional investors. Comparatively, 92.8% of PerkinElmer shares are held by institutional investors. 2.2% of PerkinElmer shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Koninklijke Philips N.V. and PerkinElmer, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Koninklijke Philips N.V.||0||5||5||0||2.50|
Koninklijke Philips N.V. currently has a consensus target price of $33.50, indicating a potential downside of 12.40%. PerkinElmer has a consensus target price of $66.91, indicating a potential upside of 1.69%. Given PerkinElmer’s higher probable upside, analysts plainly believe PerkinElmer is more favorable than Koninklijke Philips N.V..
Earnings & Valuation
This table compares Koninklijke Philips N.V. and PerkinElmer’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Koninklijke Philips N.V.||$28.94 billion||1.24||$3.69 billion||$1.74||21.98|
|PerkinElmer||$2.13 billion||3.40||$409.68 million||$3.31||19.88|
Koninklijke Philips N.V. has higher revenue and earnings than PerkinElmer. PerkinElmer 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.
PerkinElmer beats Koninklijke Philips N.V. on 10 of the 17 factors compared between the two stocks.
About Koninklijke Philips N.V.
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).
PerkinElmer, Inc. is a provider of products, services and solutions to the diagnostics, research, environmental, industrial and laboratory services markets. The Company operates through two segments: Discovery & Analytical Solutions and Diagnostics. The Discovery & Analytical Solutions segment serves the environmental, food, industrial, life sciences research and laboratory services markets. It provides analytical instrumentation for the industrial market, which includes the chemical, electronics, energy, lubricant, petrochemical and polymer industries. Its products include AAnalyst, Altus, Aquamatic, Avio, AxION, Clarus, DairyGuard, AlphaLISA, AlphaPlex, AlphaScreen, Alpha SureFire, Cell carrier and cell::explorer. The Diagnostics segment is focused on reproductive health, emerging market diagnostics and applied genomics. Its products include AutoDELFIA, BACS-on-Beads, Bioo Scientific, BoBs, Datalytix, Dexela, Dexela CMOS FPDs, Evolution, ViaCord, and Zephyr.
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