ResMed vs Koninklijke Philips Which Offers More Value?

ResMed and Koninklijke Philips are two prominent companies in the healthcare industry, specializing in the development and production of medical equipment, including respiratory devices and sleep apnea solutions. While both companies have a strong presence in the market, their stocks have exhibited different performance trends in recent years. ResMed's stock has shown steady growth, driven by innovative product offerings and expanding market reach. In contrast, Koninklijke Philips' stock has faced challenges due to market fluctuations and restructuring efforts. Investors interested in healthcare stocks may consider these two companies for their investment portfolio.

ResMed or Koninklijke Philips?

When comparing ResMed and Koninklijke Philips, 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 ResMed and Koninklijke Philips.

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. ResMed has a dividend yield of 0.83%, while Koninklijke Philips has a dividend yield of 3.74%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ResMed reports a 5-year dividend growth of 5.02% year and a payout ratio of 26.02%. On the other hand, Koninklijke Philips reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 ResMed P/E ratio at 32.00 and Koninklijke Philips's P/E ratio at -70.09. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ResMed P/B ratio is 6.86 while Koninklijke Philips's P/B ratio is 1.94.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $241.45 for ResMed and $25.62 for Koninklijke Philips. Over the past year, ResMed's prices ranged from $164.12 to $260.49, with a yearly change of 58.72%. Koninklijke Philips's prices fluctuated between $19.55 and $32.91, with a yearly change of 68.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.