Koninklijke Philips (NYSE:PHG) and Bausch + Lomb (NYSE:BLCO) Critical Analysis

Bausch + Lomb (NYSE:BLCO) and Koninklijke Philips (NYSE:PHG) are both healthcare companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Earnings & Valuation

This table compares Bausch + Lomb and Koninklijke Philips”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bausch + Lomb	$5.10 billion	1.21	-$360.00 million	($0.48)	-35.85
Koninklijke Philips	$17.66 billion	1.34	$1.01 billion	$1.36	17.77

Koninklijke Philips has higher revenue and earnings than Bausch + Lomb. Bausch + Lomb is trading at a lower price-to-earnings ratio than Koninklijke Philips, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

11.1% of Bausch + Lomb shares are owned by institutional investors. Comparatively, 13.7% of Koninklijke Philips shares are owned by institutional investors. 1.4% of Bausch + Lomb shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Bausch + Lomb and Koninklijke Philips’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bausch + Lomb	-3.21%	4.14%	1.93%
Koninklijke Philips	6.30%	14.38%	5.96%

Volatility & Risk

Bausch + Lomb has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Koninklijke Philips has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Bausch + Lomb and Koninklijke Philips, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bausch + Lomb	1	7	7	0	2.40
Koninklijke Philips	0	5	0	0	2.00

Bausch + Lomb currently has a consensus target price of $19.46, suggesting a potential upside of 13.10%. Given Bausch + Lomb’s stronger consensus rating and higher probable upside, equities analysts plainly believe Bausch + Lomb is more favorable than Koninklijke Philips.

Summary

Koninklijke Philips beats Bausch + Lomb on 10 of the 14 factors compared between the two stocks.

About Bausch + Lomb

Bausch + Lomb Corporation operates as an eye health company in the United States, Puerto Rico, China, France, Japan, Germany, the United Kingdom, Canada, Russia, Spain, Italy, Mexico, Poland, South Korea, and internationally. It operates in three segments: Vision Care, Pharmaceuticals, and Surgical. The Vision Care segment provides contact lens that covers the spectrum of wearing modalities, including daily disposable and frequently replaced contact lenses; and contact lens care products comprising over-the-counter eye drops, eye vitamins, and mineral supplements that address various conditions, such as eye allergies, conjunctivitis, dry eye, and redness relief. Its Pharmaceuticals segment offers proprietary and generic pharmaceutical products for post-operative treatments, as well as for the treatment of glaucoma, eye inflammation, ocular hypertension, dry eyes, and retinal diseases. The Surgical segment provides medical device equipment, consumables, and technologies for the treatment of cataracts, corneal, vitreous, and retinal eye conditions; and intraocular lenses and delivery systems, phacoemulsification equipment, and other surgical instruments and devices for cataract surgery. The company sells its products and services through direct sales forces and independent distributors. Bausch + Lomb Corporation was founded in 1853 and is headquartered in Vaughan, Canada. Bausch + Lomb Corporation is a subsidiary of Bausch Health Companies Inc.

About Koninklijke Philips

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.