Natus Medical (BABY) and Koninklijke Philips (PHG) Head to Head Survey

Natus Medical (NASDAQ: BABY) and Koninklijke Philips (NYSE:PHG) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Profitability

This table compares Natus Medical and Koninklijke Philips’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Natus Medical -4.05% 11.36% 6.96%
Koninklijke Philips 8.68% 6.93% 3.11%

Insider & Institutional Ownership

93.9% of Natus Medical shares are owned by institutional investors. Comparatively, 7.3% of Koninklijke Philips shares are owned by institutional investors. 5.5% of Natus Medical shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Natus Medical and Koninklijke Philips’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Natus Medical $500.97 million 1.85 $42.59 million ($0.62) -47.90
Koninklijke Philips $20.08 billion 1.70 $1.87 billion $2.03 17.94

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

Volatility and Risk

Natus Medical has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Koninklijke Philips has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Natus Medical and Koninklijke Philips, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Natus Medical 0 1 1 0 2.50
Koninklijke Philips 0 5 2 0 2.29

Natus Medical currently has a consensus price target of $49.00, suggesting a potential upside of 64.98%. Koninklijke Philips has a consensus price target of $37.00, suggesting a potential upside of 1.62%. Given Natus Medical’s stronger consensus rating and higher probable upside, research analysts clearly believe Natus Medical is more favorable than Koninklijke Philips.

Dividends

Koninklijke Philips pays an annual dividend of $0.73 per share and has a dividend yield of 2.0%. Natus Medical does not pay a dividend. Koninklijke Philips pays out 36.0% of its earnings in the form of a dividend.

About Natus Medical

Natus Medical Incorporated is a provider of newborn care and neurology healthcare products and services used for the screening, diagnosis, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, neuromuscular diseases and balance and mobility disorders. The Company’s product offerings include computerized neurodiagnostic systems for audiology, neurology, polysomnography, and neonatology, as well as newborn care products, such as hearing screening systems, phototherapy devices for the treatment of newborn jaundice, head-cooling products for the treatment of brain injury in newborns, incubators to control the newborn’s environment, and software systems for managing and tracking disorders and diseases for public health laboratories. The Company is organized into three strategic business units: Neurology, Newborn Care and Otometrics.

About Koninklijke Philips

Koninklijke Philips N.V. is the Netherlands-based health technology company. The Company’s segments include Personal Health businesses, Diagnosis & Treatment businesses, Connected Care & Health Informatics businesses, HealthTech Other and Legacy Items. The 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 Diagnosis & Treatment businesses segment delivers precision medicine and treatment, and therapy. The 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 HealthTech Other segment comprises such items, as innovation, emerging businesses, royalties, among others. The Legacy Items segment consists mainly of separation costs, legacy legal items, legacy pension costs, among others.

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