Koninklijke Philips N.V. (PHG) vs Zimmer Biomet Holdings, Inc. (ZBH)

Koninklijke Philips N.V. and Zimmer Biomet Holdings, Inc. are both Medical Devices companies. Koninklijke Philips N.V. is the larger, with a market value of $24.0B against $17.1B — 1.4× the size. Koninklijke Philips N.V. trades at the lower P/E: 18.2× against 22.0×. Koninklijke Philips N.V. grew revenue faster over the last twelve months: 9.11% against 8.62%. Zimmer Biomet Holdings, Inc. has the higher net margin (9.48% vs 6.24%) and the lower return on invested capital (3.82% vs 6.69%). Both pay a dividend; Koninklijke Philips N.V. yields more (4.19% vs 0.69%). Across the 23 metrics below, Koninklijke Philips N.V. leads on 15 and Zimmer Biomet Holdings, Inc. on 8.

Valuation

Metric PHG ZBH Medical Devices median
P/E 18.23 22.04 22.18
P/S 1.16 2.06 2.70
P/B 1.79 1.38 2.46
Price to free cash flow 12.89 16.88 22.53
EV/EBITDA 8.56 10.62 11.78
EV/Sales 1.41 2.89 2.38
Earnings yield 5.48% 4.54% (8.22%)
Free cash flow yield 7.76% 5.92% (7.80%)

Profitability

Metric PHG ZBH Medical Devices median
Gross margin 45.93% 69.87% 56.01%
Operating margin 9.64% 14.16% (15.03%)
Net margin 6.24% 9.48% (20.40%)
Free cash flow margin 8.99% 12.18% (7.24%)
Return on equity 10.20% 6.41% (15.32%)
Return on assets 4.21% 3.53% (19.72%)
Return on invested capital 6.69% 3.82% (10.33%)

Growth

Metric PHG ZBH Medical Devices median
Revenue growth (TTM) 9.11% 8.62% 8.80%
EPS growth (last fiscal year) 229.63% (19.86%) —
Revenue growth, 5-year CAGR (1.99%) 6.08% 15.23%
Net income growth, 5-year CAGR (5.67%) 0.00% 0.00%

Health

Metric PHG ZBH Medical Devices median
Debt to equity 0.55 0.59 0.07
Current ratio 1.26 1.69 2.50
Net debt to EBITDA 1.59 3.16 0.49

Dividend

Metric PHG ZBH Medical Devices median
Dividend yield 4.19% 0.69% 0.94%
Payout ratio 0.00 0.40 0.00

Size

Metric PHG ZBH Medical Devices median
Market cap 24.04b 17.11b 172.91m

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