Koninklijke Philips vs ResMed Which Is a Better Investment?

Koninklijke Philips and ResMed are two prominent companies in the healthcare industry, with a focus on respiratory and sleep solutions. Philips, a diversified health technology company, has a strong presence in the global market, offering a wide range of products and services. ResMed, on the other hand, specializes in sleep apnea and respiratory care, with a reputation for innovative products and a loyal customer base. Both companies are publicly traded, and their stocks have performed well in recent years, attracting the attention of investors seeking opportunities in the healthcare sector.

Koninklijke Philips or ResMed?

When comparing Koninklijke Philips and ResMed, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Koninklijke Philips and ResMed.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Koninklijke Philips has a dividend yield of 3.69%, while ResMed has a dividend yield of 0.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Koninklijke Philips reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ResMed reports a 5-year dividend growth of 5.02% year and a payout ratio of 26.02%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Koninklijke Philips P/E ratio at -71.04 and ResMed's P/E ratio at 31.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Koninklijke Philips P/B ratio is 1.96 while ResMed's P/B ratio is 6.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Koninklijke Philips has seen a 5-year revenue growth of 0.05%, while ResMed's is 0.76%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Koninklijke Philips's ROE at -2.74% and ResMed's ROE at 23.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $26.15 for Koninklijke Philips and $239.41 for ResMed. Over the past year, Koninklijke Philips's prices ranged from $19.55 to $32.91, with a yearly change of 68.34%. ResMed's prices fluctuated between $162.18 and $260.49, with a yearly change of 60.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.