Koninklijke Philips (NYSE:PHG) and Brainsway (NASDAQ:BWAY) Financial Contrast

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

Risk & Volatility

Brainsway has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Koninklijke Philips has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Valuation & Earnings

This table compares Brainsway 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
Brainsway	$52.22 million	8.76	$7.57 million	$0.44	25.82
Koninklijke Philips	$20.17 billion	1.31	$1.01 billion	$1.36	19.82

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Brainsway and Koninklijke Philips, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brainsway	0	2	5	0	2.71
Koninklijke Philips	0	5	0	0	2.00

Brainsway currently has a consensus price target of $18.20, suggesting a potential upside of 60.21%. Given Brainsway’s stronger consensus rating and higher probable upside, analysts clearly believe Brainsway is more favorable than Koninklijke Philips.

Profitability

This table compares Brainsway and Koninklijke Philips’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brainsway	15.65%	12.74%	8.17%
Koninklijke Philips	6.30%	14.38%	5.96%

Insider and Institutional Ownership

30.1% of Brainsway shares are owned by institutional investors. Comparatively, 13.7% of Koninklijke Philips shares are owned by institutional investors. 19.0% of Brainsway shares are owned 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.

Summary

Brainsway beats Koninklijke Philips on 10 of the 14 factors compared between the two stocks.

About Brainsway

BrainsWay Ltd. develops and sells noninvasive neurostimulation treatments for mental health disorders in the United States and internationally. It offers Deep Transcranial Magnetic Stimulation platform technology for the treatment of major depressive disorders, anxious depression, obsessive-compulsive disorders, smoking addiction, bipolar disorders, post traumatic stress disorders, schizophrenia, Alzheimer's disease, autism, chronic pain, multiple sclerosis, post stroke rehabilitation, and Parkinson's diseases. The company serves doctors, hospitals, and medical centers in the field of psychiatry. BrainsWay Ltd. was founded in 2003 and is headquartered in Jerusalem, Israel.

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.