Koninklijke Philips N.V. (PHG) vs STERIS plc (STE)

Koninklijke Philips N.V. and STERIS plc are both Medical Devices companies. Koninklijke Philips N.V. is the larger, with a market value of $24.0B against $20.4B — 1.2× the size. Koninklijke Philips N.V. trades at the lower P/E: 18.2× against 25.4×. Koninklijke Philips N.V. grew revenue faster over the last twelve months: 9.11% against 8.37%. STERIS plc has the higher net margin (13.3% vs 6.24%) and the higher return on invested capital (8.27% vs 6.69%). Both pay a dividend; Koninklijke Philips N.V. yields more (4.19% vs 0.92%). Across the 23 metrics below, Koninklijke Philips N.V. leads on 12 and STERIS plc on 11.

Valuation

Metric PHG STE Medical Devices median
P/E 18.23 25.45 22.18
P/S 1.16 3.38 2.70
P/B 1.79 2.82 2.46
Price to free cash flow 12.89 21.79 22.53
EV/EBITDA 8.56 13.35 11.78
EV/Sales 1.41 3.61 2.38
Earnings yield 5.48% 3.93% (8.22%)
Free cash flow yield 7.76% 4.59% (7.80%)

Profitability

Metric PHG STE Medical Devices median
Gross margin 45.93% 44.43% 56.01%
Operating margin 9.64% 18.91% (15.03%)
Net margin 6.24% 13.33% (20.40%)
Free cash flow margin 8.99% 15.50% (7.24%)
Return on equity 10.20% 11.35% (15.32%)
Return on assets 4.21% 7.62% (19.72%)
Return on invested capital 6.69% 8.27% (10.33%)

Growth

Metric PHG STE Medical Devices median
Revenue growth (TTM) 9.11% 8.37% 8.80%
EPS growth (last fiscal year) 229.63% 27.90% —
Revenue growth, 5-year CAGR (1.99%) 13.82% 15.23%
Net income growth, 5-year CAGR (5.67%) 14.51% 0.00%

Health

Metric PHG STE Medical Devices median
Debt to equity 0.55 0.26 0.07
Current ratio 1.26 1.91 2.50
Net debt to EBITDA 1.59 0.94 0.49

Dividend

Metric PHG STE Medical Devices median
Dividend yield 4.19% 0.92% 0.94%
Payout ratio 0.00 1.55 0.00

Size

Metric PHG STE Medical Devices median
Market cap 24.04b 20.36b 172.91m

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