Presbia PLC (NASDAQ: LENS) and Koninklijke Philips N.V. (NYSE:PHG) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Dividends

Koninklijke Philips N.V. pays an annual dividend of $0.73 per share and has a dividend yield of 2.0%. Presbia PLC does not pay a dividend. Koninklijke Philips N.V. pays out 42.0% of its earnings in the form of a dividend. Presbia PLC has raised its dividend for 4 consecutive years.

Insider & Institutional Ownership

19.6% of Presbia PLC shares are held by institutional investors. Comparatively, 7.2% of Koninklijke Philips N.V. shares are held by institutional investors. 74.7% of Presbia PLC shares are held 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Presbia PLC and Koninklijke Philips N.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Presbia PLC 0 0 3 0 3.00
Koninklijke Philips N.V. 0 5 5 0 2.50

Presbia PLC presently has a consensus price target of $12.00, indicating a potential upside of 387.79%. Koninklijke Philips N.V. has a consensus price target of $33.50, indicating a potential downside of 9.61%. Given Presbia PLC’s stronger consensus rating and higher probable upside, analysts clearly believe Presbia PLC is more favorable than Koninklijke Philips N.V..

Risk & Volatility

Presbia PLC has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500. Comparatively, Koninklijke Philips N.V. has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Profitability

This table compares Presbia PLC and Koninklijke Philips N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Presbia PLC N/A -132.09% -113.64%
Koninklijke Philips N.V. 6.39% 8.92% 3.85%

Earnings & Valuation

This table compares Presbia PLC and Koninklijke Philips N.V.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Presbia PLC $16,000.00 2,607.09 -$16.18 million N/A N/A
Koninklijke Philips N.V. $29.39 billion 1.19 $3.74 billion $1.74 21.30

Koninklijke Philips N.V. has higher revenue and earnings than Presbia PLC.

Summary

Koninklijke Philips N.V. beats Presbia PLC on 8 of the 15 factors compared between the two stocks.

About Presbia PLC

Presbia PLC is an ophthalmic device company. The Company develops and markets an optical lens implant for treating presbyopia, the age-related loss of the ability to focus on near objects. The Company’s segment is the restoration of clear vision caused by presbyopia. The Company provides the refractive lens for patient surgeries and accessories for procedures performed exclusively outside the United States. The Company’s lens, referred to as the microlens, is a miniature lens designed to be surgically implanted in a patient’s eye to improve that patient’s ability to see objects at close distances. The microlens is a disc shaped lens that has a refractive zone in the periphery designed to improve near vision problems associated with presbyopia and a central zone that is designed to improve distance vision. The Company’s solution is a standalone solution for plano presbyopes, or those individuals suffering from presbyopia but do not have any other visual disorders.

About Koninklijke Philips N.V.

Koninklijke Philips N.V. is a health technology company. The Company’s segments include Personal Health businesses, Diagnosis & Treatment businesses, Connected Care & Health Informatics businesses, and Lighting. The Company’s Personal Health businesses segment is engaged in the health continuum, delivering integrated, connected solutions that support healthier lifestyles and those living with chronic disease. The Company’s Diagnosis & Treatment businesses segment delivers precision medicine and treatment, and therapy. The Company’s Connected Care & Health Informatics businesses segment provides consumers, care givers and clinicians with digital solutions that facilitate care by enabling precision medicine and population health management. The Company’s Philips Lighting is engaged in the development, manufacture and application of lighting products, systems and services. The Company is the parent company of the Philips Group (Philips).

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