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 $29.8B against $20.4B — 1.5× the size. Koninklijke Philips N.V. trades at the lower P/E: 25.8× against 26.9×. Koninklijke Philips N.V. grew revenue faster over the last twelve months: 7.98% against 6.98%. Zimmer Biomet Holdings, Inc. has the higher net margin (8.95% vs 5.34%) and the lower return on invested capital (3.66% vs 6.15%). Both pay a dividend; Koninklijke Philips N.V. yields more (3.33% vs 0.90%). Across the 23 metrics below, Koninklijke Philips N.V. leads on 14 and Zimmer Biomet Holdings, Inc. on 9.

Valuation

Metric PHG ZBH Medical Devices median
P/E 25.76 26.87 25.58
P/S 1.44 2.37 2.54
P/B 2.23 1.61 2.48
Price to free cash flow 14.06 18.22 28.81
EV/EBITDA 11.12 12.10 11.51
EV/Sales 1.68 3.20 2.72
Earnings yield 3.88% 3.72% (12.82%)
Free cash flow yield 7.11% 5.49% (8.18%)

Profitability

Metric PHG ZBH Medical Devices median
Gross margin 46.43% 69.68% 57.76%
Operating margin 8.68% 13.55% (15.07%)
Net margin 5.34% 8.95% (14.45%)
Free cash flow margin 10.27% 13.02% (3.88%)
Return on equity 8.54% 6.02% (10.35%)
Return on assets 3.49% 3.26% (17.26%)
Return on invested capital 6.15% 3.66% (5.27%)

Growth

Metric PHG ZBH Medical Devices median
Revenue growth (TTM) 7.98% 6.98% 10.41%
EPS growth (last fiscal year) 229.63% (19.86%) 28.17%
Revenue growth, 5-year CAGR (1.99%) 6.08% 15.74%
Net income growth, 5-year CAGR (5.67%) 0.00% 0.00%

Health

Metric PHG ZBH Medical Devices median
Debt to equity 0.60 0.59 0.04
Current ratio 1.33 1.46 2.74
Net debt to EBITDA 1.59 3.16 0.54

Dividend

Metric PHG ZBH Medical Devices median
Dividend yield 3.33% 0.90% 1.02%
Payout ratio 0.87 0.24 0.37

Size

Metric PHG ZBH Medical Devices median
Market cap 29.82b 20.38b 239.53m

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