Financial Survey: Koninklijke Philips (NYSE:PHG) and ICU Medical (NASDAQ:ICUI)

Koninklijke Philips (NYSE:PHG) and ICU Medical (NASDAQ:ICUI) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

13.7% of Koninklijke Philips shares are owned by institutional investors. Comparatively, 96.1% of ICU Medical shares are owned by institutional investors. 1.5% of ICU Medical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Koninklijke Philips has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, ICU Medical has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Profitability

This table compares Koninklijke Philips and ICU Medical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koninklijke Philips	1.00%	11.95%	4.94%
ICU Medical	-1.56%	7.24%	3.50%

Valuation and Earnings

This table compares Koninklijke Philips and ICU Medical”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke Philips	$17.86 billion	1.52	-$758.55 million	$0.19	148.11
ICU Medical	$2.37 billion	1.37	-$117.69 million	($1.52)	-86.65

ICU Medical has lower revenue, but higher earnings than Koninklijke Philips. ICU Medical is trading at a lower price-to-earnings ratio than Koninklijke Philips, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Koninklijke Philips and ICU Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke Philips	0	1	2	1	3.00
ICU Medical	0	1	3	1	3.00

ICU Medical has a consensus price target of $181.00, suggesting a potential upside of 37.42%. Given ICU Medical’s higher probable upside, analysts plainly believe ICU Medical is more favorable than Koninklijke Philips.

Summary

Koninklijke Philips beats ICU Medical on 7 of the 13 factors compared between the two stocks.

About Koninklijke Philips

Koninklijke Philips N.V. operates as a health technology company in North America, the Greater China, and internationally. The company operates through Diagnosis & Treatment Businesses, Connected Care Businesses, and Personal Health Businesses segments. It also provides diagnostic imaging solutions, includes magnetic resonance imaging, X-ray systems, and computed tomography (CT) systems and software comprising detector-based spectral CT solutions, as well as molecular and hybrid imaging solutions for nuclear medicine; echography solutions focused on diagnosis, treatment planning and guidance for cardiology, general imaging, obstetrics/gynecology, and point-of-care applications; integrated interventional systems, and interventional diagnostic and therapeutic devices to treat coronary artery and peripheral vascular disease. In addition, the company offers acute patient management solutions; emergency care solutions; sleep and respiratory care solutions; and electronic medical record and care management solutions. Further, it provides power toothbrushes, brush heads, and interdental cleaning and teeth whitening products; infant feeding, baby monitors, and digital parental solutions; and grooming and beauty products and solutions. The company has strategic partnership agreements with TriHealth, Northwell, and Atrium Health. The company was formerly known as Koninklijke Philips Electronics N.V. and changed its name to Koninklijke Philips N.V. in May 2013. Koninklijke Philips N.V. was founded in 1891 and is headquartered in Amsterdam, the Netherlands.

About ICU Medical

ICU Medical, Inc., together with its subsidiaries, develops, manufactures, and sells medical devices used in infusion therapy, vascular access, and vital care applications worldwide. Its infusion therapy products include needlefree products under the MicroClave, MicroClave Clear, and NanoClave brands; Neutron catheter patency devices; ChemoClave and ChemoLock closed system transfer devices, which are used to limit the escape of hazardous drugs or vapor concentrations, block the transfer of environmental contaminants into the system, and eliminates the risk of needlestick injury; Tego needle free connectors; Deltec GRIPPER non-coring needles for portal access; and ClearGuard, SwabCap, and SwabTip disinfection caps. The company provides IV therapy and diluents, such as sodium chloride, dextrose, balanced electrolyte solutions, lactated ringer's, ringer's, mannitol, sodium chloride/dextrose, and sterile water; and irrigation solutions comprising sodium chloride and sterile water irrigation, physiologic solutions, ringer's irrigation, acetic acid irrigation, glycine irrigation, sorbitol-mannitol irrigation, flexible containers, and pour bottle options. It offers infusion pumps under the Plum 360 and Plum Duo brands; ambulatory and syringe infusion hardware products; IV mediation safety software, including ICU Medical MedNet, an enterprise-class medication management platform; LifeShield and PharmGuard medication infusion safety software; hemodynamic monitoring products; anesthesia systems and devices, breathing circuits, ventilation, respiratory, and specialty airway products; temperature management solutions; anesthesia/pain management trays and components; and professional services. The company's customers include acute care hospitals, wholesalers, ambulatory clinics, and alternate site facilities, including outpatient clinics, home health care providers, and long-term care facilities. ICU Medical, Inc. was founded in 1984 and is based in San Clemente, California.