Siemens vs Koninklijke Philips Which Is More Promising?

Siemens and Koninklijke Philips are two of the largest and most well-known multinational companies in the world, both operating in the technology and healthcare sectors. Investors often compare the performance of their stocks due to their competitive nature within these industries. Siemens, a German conglomerate, is known for its diverse product offerings, while Dutch-based Koninklijke Philips specializes in healthcare and lighting solutions. Both companies have experienced fluctuations in their stock prices over the years, making them popular choices for investors seeking stability and growth potential.

Siemens or Koninklijke Philips?

When comparing Siemens 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 Siemens 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. Siemens has a dividend yield of 0.13%, while Koninklijke Philips has a dividend yield of 3.73%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Siemens reports a 5-year dividend growth of 7.39% year and a payout ratio of 0.00%. 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 Siemens P/E ratio at 103.37 and Koninklijke Philips's P/E ratio at -70.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Siemens P/B ratio is 18.28 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, Siemens has seen a 5-year revenue growth of 0.58%, while Koninklijke Philips's is 0.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Siemens's ROE at 19.30% 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 ₹7791.95 for Siemens and $25.69 for Koninklijke Philips. Over the past year, Siemens's prices ranged from ₹3809.15 to ₹8129.90, with a yearly change of 113.43%. 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.