Comparing Brainsway (NASDAQ:BWAY) and Koninklijke Philips (NYSE:PHG)

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

Volatility & Risk

Koninklijke Philips has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Brainsway has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Earnings and Valuation

This table compares Koninklijke Philips and Brainsway”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke Philips	$20.17 billion	1.48	$1.01 billion	$1.17	25.93
Brainsway	$52.22 million	8.59	$7.57 million	$0.44	25.34

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

Analyst Ratings

This is a summary of current recommendations and price targets for Koninklijke Philips and Brainsway, as provided by MarketBeat.com.

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

Brainsway has a consensus target price of $18.20, indicating a potential upside of 63.23%. Given Brainsway’s stronger consensus rating and higher probable upside, analysts clearly believe Brainsway is more favorable than Koninklijke Philips.

Institutional and Insider Ownership

13.7% of Koninklijke Philips shares are owned by institutional investors. Comparatively, 30.1% of Brainsway shares are owned by institutional investors. 19.0% of Brainsway shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

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

Summary

Brainsway beats Koninklijke Philips on 9 of the 14 factors compared between the two stocks.

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.

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.