Koninklijke Philips NV (NYSE: PHG) and Cytosorbents Corporation (NASDAQ:CTSO) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Insider and Institutional Ownership

7.6% of Koninklijke Philips NV shares are held by institutional investors. Comparatively, 6.9% of Cytosorbents Corporation shares are held by institutional investors. 5.6% of Cytosorbents Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Koninklijke Philips NV and Cytosorbents Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Koninklijke Philips NV 3.73% 3.92% 2.09%
Cytosorbents Corporation -80.56% -529.95% -75.38%

Volatility & Risk

Koninklijke Philips NV has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Cytosorbents Corporation has a beta of -0.57, suggesting that its stock price is 157% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Koninklijke Philips NV and Cytosorbents Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Koninklijke Philips NV 0 5 5 0 2.50
Cytosorbents Corporation 0 0 6 0 3.00

Koninklijke Philips NV presently has a consensus target price of $33.50, suggesting a potential downside of 11.47%. Cytosorbents Corporation has a consensus target price of $12.71, suggesting a potential upside of 146.63%. Given Cytosorbents Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Cytosorbents Corporation is more favorable than Koninklijke Philips NV.

Dividends

Koninklijke Philips NV pays an annual dividend of $0.73 per share and has a dividend yield of 1.9%. Cytosorbents Corporation does not pay a dividend. Koninklijke Philips NV pays out 42.0% of its earnings in the form of a dividend. Cytosorbents Corporation has raised its dividend for 4 consecutive years.

Valuation and Earnings

This table compares Koninklijke Philips NV and Cytosorbents Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Koninklijke Philips NV $29.15 billion 1.22 $3.71 billion $1.74 21.75
Cytosorbents Corporation $12.18 million 11.90 -$10.41 million ($0.36) -14.31

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

Summary

Koninklijke Philips NV beats Cytosorbents Corporation on 9 of the 16 factors compared between the two stocks.

Koninklijke Philips NV Company Profile

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).

Cytosorbents Corporation Company Profile

CytoSorbents Corporation is a critical care focused immunotherapy company. The Company is engaged in commercializing its product, CytoSorb, which is a blood purification technology with focus in preventing or treating multiple organ failure. The Company’s purification technologies are based on biocompatible, porous polymer beads that remove toxic substances from blood and other bodily fluids by pore capture and surface adsorption. The Company’s CytoSorb is an extracorporeal cytokine filter and is designed to reduce the cytokine storm that causes inflammation, organ failure and death in common critical illnesses, such as sepsis, burn injury, trauma, lung injury and pancreatitis. In addition, CytoSorb is used in other inflammatory conditions, such as cardiac surgery and autoimmune disease flares and cancer cachexia. It also has other products under development based upon its blood purification technology, including HemoDefend, ContrastSorb, DrugSorb, BetaSorb and others.

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