Koninklijke Philips vs Signify Which Is a Smarter Choice?

Koninklijke Philips, commonly known as Philips, is a global leader in healthcare technology, lighting, and consumer electronics. Signify, formerly known as Philips Lighting, is a spin-off company dedicated solely to lighting solutions. Both companies have a strong presence in the market, with Philips focusing on healthcare innovations and Signify specializing in lighting products and services. Investors may compare these two stocks based on their respective industries, financial performance, and potential for growth in the future.

Koninklijke Philips or Signify?

When comparing Koninklijke Philips and Signify, 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 Signify.

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 3.74%, while Signify has a dividend yield of 7.94%. 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, Signify reports a 5-year dividend growth of 0.00% year and a payout ratio of 80.22%.

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 -70.09 and Signify's P/E ratio at 9.98. 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 1.94 while Signify's P/B ratio is 0.96.

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 Signify's is 1.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Koninklijke Philips's ROE at -2.74% and Signify's ROE at 9.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $25.62 for Koninklijke Philips and $11.10 for Signify. Over the past year, Koninklijke Philips's prices ranged from $19.55 to $32.91, with a yearly change of 68.34%. Signify's prices fluctuated between $10.70 and $17.08, with a yearly change of 59.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.