Critical Contrast: Oramed Pharmaceuticals (NASDAQ:ORMP) versus Koninklijke Philips (NYSE:PHG)

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

Volatility and Risk

Oramed Pharmaceuticals has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Koninklijke Philips has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Institutional & Insider Ownership

12.7% of Oramed Pharmaceuticals shares are held by institutional investors. Comparatively, 13.7% of Koninklijke Philips shares are held by institutional investors. 17.8% of Oramed Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Oramed Pharmaceuticals and Koninklijke Philips, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oramed Pharmaceuticals	0	1	0	0	2.00
Koninklijke Philips	0	4	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oramed Pharmaceuticals	N/A	-6.83%	-6.25%
Koninklijke Philips	5.09%	13.68%	5.59%

Dividends

Oramed Pharmaceuticals pays an annual dividend of $0.25 per share and has a dividend yield of 6.4%. Koninklijke Philips pays an annual dividend of $0.82 per share and has a dividend yield of 2.8%. Oramed Pharmaceuticals pays out 16.8% of its earnings in the form of a dividend. Koninklijke Philips pays out 77.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oramed Pharmaceuticals is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Oramed Pharmaceuticals and Koninklijke Philips”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oramed Pharmaceuticals	$2.00 million	78.47	$64.05 million	$1.49	2.60
Koninklijke Philips	$20.17 billion	1.42	$1.01 billion	$1.06	28.06

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

Summary

Koninklijke Philips beats Oramed Pharmaceuticals on 7 of the 13 factors compared between the two stocks.

About Oramed Pharmaceuticals

Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules for delivery of polypeptides. The company's product portfolio includes ORMD-0801, an oral insulin capsule, which is in phase III clinical trial for the treatment of individuals with diabetes, as well as in phase II clinical trial for the treatment of non-alcoholic steatohepatitis; and ORA-D-013-1 and ORA-D-013-2, which have completed phase II clinical trial for the treatment of type 2 diabetes. It has license agreements with Oravax Medical Inc. to commercialize oral vaccines for COVID-19 and other novel coronaviruses. Oramed Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in New York.

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.