Signify vs Koninklijke Philips Which Is More Profitable?

Signify and Koninklijke Philips are two prominent companies in the lighting industry, both based in the Netherlands. Signify was formerly known as Philips Lighting before it was spun off from its parent company, Koninklijke Philips. These two companies compete in the market for LED lighting solutions and innovative technologies. While Signify focuses solely on lighting solutions, Koninklijke Philips operates in a variety of sectors such as healthcare and consumer electronics. Investors interested in the lighting industry may consider comparing the stocks of these two companies for potential investment opportunities.

Signify or Koninklijke Philips?

When comparing Signify 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 Signify 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. Signify has a dividend yield of 7.98%, while Koninklijke Philips has a dividend yield of 3.71%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Signify reports a 5-year dividend growth of 0.00% year and a payout ratio of 80.22%. 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 Signify P/E ratio at 9.94 and Koninklijke Philips's P/E ratio at -71.10. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Signify P/B ratio is 0.95 while Koninklijke Philips's P/B ratio is 1.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Signify has seen a 5-year revenue growth of 0.11%, while Koninklijke Philips's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Signify's ROE at 9.39% 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 $11.25 for Signify and $26.36 for Koninklijke Philips. Over the past year, Signify's prices ranged from $11.25 to $17.08, with a yearly change of 51.82%. Koninklijke Philips's prices fluctuated between $19.49 and $32.91, with a yearly change of 68.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.