Verano (OTCMKTS:VRNOF) versus Koninklijke Philips (NYSE:PHG) Financial Analysis

Verano (OTCMKTS:VRNOF) and Koninklijke Philips (NYSE:PHG) are both medical companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

Verano has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Koninklijke Philips has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Valuation & Earnings

This table compares Verano and Koninklijke Philips”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verano	$878.59 million	0.52	-$341.86 million	($0.98)	-1.29
Koninklijke Philips	$20.17 billion	1.31	$1.01 billion	$1.06	25.92

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

Insider & Institutional Ownership

9.0% of Verano shares are owned by institutional investors. Comparatively, 13.7% of Koninklijke Philips shares are owned by institutional investors. 9.1% of Verano shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Verano and Koninklijke Philips’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verano	-41.68%	-9.54%	-4.51%
Koninklijke Philips	5.09%	13.68%	5.59%

Analyst Recommendations

This is a breakdown of recent ratings for Verano and Koninklijke Philips, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verano	1	0	0	1	2.50
Koninklijke Philips	0	2	1	1	2.75

Summary

Koninklijke Philips beats Verano on 11 of the 13 factors compared between the two stocks.

About Verano

Verano Holdings Corp. operates as a vertically integrated multi-state cannabis operator in the United States. The company engages in the cultivation, processing, wholesale, and retail distribution of cannabis in Arizona, Arkansas, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, Ohio, Pennsylvania, and West Virginia. It offers cannabis products under the Encore, Avexia, MUV, Savvy, BITS, and Verano brands for medical and adult-use markets. The company is headquartered in Chicago, Illinois.

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.