Reviewing Koninklijke Philips (NYSE:PHG) and Canopy Growth (NASDAQ:CGC)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Canopy Growth and Koninklijke Philips, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canopy Growth	2	3	2	0	2.00
Koninklijke Philips	0	2	1	1	2.75

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Canopy Growth	-94.39%	-46.85%	-28.95%
Koninklijke Philips	5.09%	13.68%	5.59%

Risk and Volatility

Canopy Growth has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Koninklijke Philips has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Valuation and Earnings

This table compares Canopy Growth and Koninklijke Philips”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canopy Growth	$225.65 million	1.64	-$429.86 million	($1.30)	-0.70
Koninklijke Philips	$20.17 billion	1.28	$1.01 billion	$1.06	25.32

Koninklijke Philips has higher revenue and earnings than Canopy Growth. Canopy Growth 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 and Institutional Ownership

3.3% of Canopy Growth shares are owned by institutional investors. Comparatively, 13.7% of Koninklijke Philips shares are owned by institutional investors. 0.2% of Canopy Growth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Koninklijke Philips beats Canopy Growth on 11 of the 14 factors compared between the two stocks.

About Canopy Growth

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments. The company offers dried flower, pre-rolled joints, oils, softgel capsules, infused beverages, edibles comprising gummies, and topical formats, as well as vaporizer devices. It sells its products under the Tweed, 7ACRES, DOJA, Deep Space, HiWay, Maitri, Twd., Vert, Spectrum Therapeutics, Canopy Medical, Storz & Bickel, Martha Stewart, and Wana brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, Canada.

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.