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

Insider and Institutional Ownership

7.3% of Koninklijke Philips shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Nanosphere -99.68% -232.37% -65.52%
Koninklijke Philips 6.34% 5.26% 3.51%

Earnings and Valuation

This table compares Nanosphere and Koninklijke Philips’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nanosphere N/A N/A N/A ($5.39) N/A
Koninklijke Philips $27.13 billion 1.33 $1.60 billion $1.14 33.70

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

Dividends

Koninklijke Philips pays an annual dividend of $0.73 per share and has a dividend yield of 1.9%. Nanosphere does not pay a dividend. Koninklijke Philips pays out 64.0% of its earnings in the form of a dividend. Koninklijke Philips has raised its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nanosphere and Koninklijke Philips, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nanosphere 0 0 0 0 N/A
Koninklijke Philips 0 6 2 0 2.25

Koninklijke Philips has a consensus price target of $37.00, suggesting a potential downside of 3.70%.

Summary

Koninklijke Philips beats Nanosphere on 9 of the 10 factors compared between the two stocks.

About Nanosphere

Nanosphere, Inc. is engaged in developing, manufacturing and marketing an advanced molecular diagnostics platform, the Verigene System, which enables genomic and protein testing on a single platform. The Verigene System includes a molecular diagnostics workstation that is a single use consumable for testing. The Verigene System consists of a microfluidics processor, a touchscreen reader and disposable test cartridges. The Company is focused on the infectious disease diagnostics market. Its Infectious Disease Assays include Respiratory Virus with Sub-Typing (RV+); Respiratory Pathogens/Expanded Panel (RP Flex); Bloodstream Infection (BSI) Panels, which include Blood Culture – Gram Positive (BC-GP), Blood Culture – Gram Negative (BC-GN) and Blood Culture – Yeast (BC-Y); C. difficile (CDF), and Enteric Panel (EP). Its Human Pharmacogenetic Assays include Hypercoagulation (FV, FII, MTHFR Panel) and CYP2C19 Genetic Variance. It is focused on the infectious disease diagnostics market.

About Koninklijke Philips

Koninklijke Philips N.V. is the Netherlands-based health technology company. The Company’s segments include Personal Health businesses, Diagnosis & Treatment businesses, Connected Care & Health Informatics businesses, HealthTech Other and Legacy Items. The 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 Diagnosis & Treatment businesses segment delivers precision medicine and treatment, and therapy. The 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 HealthTech Other segment comprises such items, as innovation, emerging businesses, royalties, among others. The Legacy Items segment consists mainly of separation costs, legacy legal items, legacy pension costs, among others.

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