Head-To-Head Review: Penumbra (NYSE:PEN) vs. Koninklijke Philips (NYSE:PHG)

Penumbra (NYSE:PEN) and Koninklijke Philips (NYSE:PHG) are both large-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Insider and Institutional Ownership

88.9% of Penumbra shares are held by institutional investors. Comparatively, 13.7% of Koninklijke Philips shares are held by institutional investors. 2.9% of Penumbra shares are held by 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 Penumbra and Koninklijke Philips’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Penumbra	10.67%	10.50%	8.17%
Koninklijke Philips	6.30%	14.38%	5.96%

Volatility and Risk

Penumbra has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Koninklijke Philips has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Penumbra and Koninklijke Philips, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penumbra	0	14	3	0	2.18
Koninklijke Philips	0	5	0	0	2.00

Penumbra presently has a consensus price target of $367.07, indicating a potential upside of 15.31%. Given Penumbra’s stronger consensus rating and higher probable upside, equities analysts plainly believe Penumbra is more favorable than Koninklijke Philips.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penumbra	$1.40 billion	8.93	$177.69 million	$4.07	78.22
Koninklijke Philips	$20.17 billion	1.20	$1.01 billion	$1.36	18.11

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

Summary

Penumbra beats Koninklijke Philips on 10 of the 14 factors compared between the two stocks.

About Penumbra

Penumbra, Inc., together with its subsidiaries, designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers peripheral products, including the Indigo System for power aspiration of thrombus in the body; Lightning Flash, a mechanical thrombectomy system; Lightning Bolt 7, an arterial thrombectomy system; and CAT RX. It also provides access products, including guide catheters and the Penumbra distal delivery catheters under the Neuron, Neuron MAX Select, BENCHMARK, BMX96, BMX81, DDC, SENDit, and PX SLIM brands; Penumbra System, an integrated mechanical thrombectomy system comprising reperfusion catheters and separators, the 3D Revascularization Device, aspiration tubing, and aspiration pump under the Penumbra RED, JET, ACE, Max, 3D Revascularization Device, and Penumbra ENGINE brands; and neuro embolization coiling systems that includes the Penumbra Coil 400, a detachable coil that provides an alternative for the treatment of aneurysms and other complex lesions, as well as Penumbra SMART COIL, a detachable coil to treat patients with a wide range of neurovascular lesions; and POD400 and PAC400 brands. In addition, the company provides peripheral embolization products, such as Ruby Coil System consisting of detachable coils for peripheral applications; Penumbra LANTERN Delivery Microcatheter, a low-profile microcatheter with a high-flow lumen; POD (Penumbra Occlusion Device) System, a single device solution; and Packing Coil, a complementary device for use in other peripheral embolization products. Further, it offers an immersive 3D computer-based technology platform under the real immersive system brand; and neurosurgical tools, such as Artemis Neuro Evacuation Device for surgical removal of fluid and tissue from the ventricles and cerebrum. The company sells its products through direct sales organizations and distributors. Penumbra, Inc. was incorporated in 2004 and is headquartered in Alameda, California.

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.