Head-To-Head Analysis: Koninklijke Philips (NYSE:PHG) versus Avita Medical (NASDAQ:RCEL)

Avita Medical (NASDAQ:RCELGet Free Report) and Koninklijke Philips (NYSE:PHGGet Free Report) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avita Medical $75.63 million 4.56 -$48.59 million ($1.44) -7.78
Koninklijke Philips $20.17 billion 1.26 $1.01 billion $1.36 19.04

Koninklijke Philips has higher revenue and earnings than Avita Medical. Avita 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 Ratings

This is a breakdown of current ratings and target prices for Avita Medical and Koninklijke Philips, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avita Medical 1 1 5 0 2.57
Koninklijke Philips 0 5 0 0 2.00

Avita Medical currently has a consensus price target of $11.40, indicating a potential upside of 1.79%. Given Avita Medical’s stronger consensus rating and higher possible upside, research analysts clearly believe Avita Medical is more favorable than Koninklijke Philips.

Profitability

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

Net Margins Return on Equity Return on Assets
Avita Medical -56.96% N/A -78.53%
Koninklijke Philips 6.30% 14.38% 5.96%

Insider and Institutional Ownership

27.7% of Avita Medical shares are owned by institutional investors. Comparatively, 13.7% of Koninklijke Philips shares are owned by institutional investors. 2.2% of Avita 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.

Risk and Volatility

Avita Medical has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Koninklijke Philips has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

About Avita Medical

(Get Free Report)

AVITA Medical, Inc., together with its subsidiaries, operates as a regenerative medicine company in the United States and internationally. The company's lead product is the RECELL System, a cell harvesting device used for the treatment of thermal burn wounds, full-thickness skin defects, and repigmentation of stable depigmented vitiligo lesions. It develops RECELL GO to control the manual process of disaggregation, filtration, and soak time. The company was formerly known as AVITA Therapeutics, Inc. AVITA Medical, Inc. was incorporated in 2020 and is headquartered in Valencia, California.

About Koninklijke Philips

(Get Free Report)

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.

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