Financial Review: Bausch + Lomb (NYSE:BLCO) and ResMed (NYSE:RMD)

Bausch + Lomb (NYSE:BLCO) and ResMed (NYSE:RMD) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Insider & Institutional Ownership

11.1% of Bausch + Lomb shares are owned by institutional investors. Comparatively, 55.0% of ResMed shares are owned by institutional investors. 1.4% of Bausch + Lomb shares are owned by company insiders. Comparatively, 0.6% of ResMed shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Bausch + Lomb and ResMed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bausch + Lomb	-3.21%	4.14%	1.93%
ResMed	26.94%	25.58%	18.89%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Bausch + Lomb and ResMed, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bausch + Lomb	1	7	6	1	2.47
ResMed	0	9	7	0	2.44

Bausch + Lomb currently has a consensus price target of $19.46, suggesting a potential upside of 17.10%. ResMed has a consensus price target of $243.23, suggesting a potential upside of 1.44%. Given Bausch + Lomb’s stronger consensus rating and higher possible upside, equities analysts plainly believe Bausch + Lomb is more favorable than ResMed.

Valuation & Earnings

This table compares Bausch + Lomb and ResMed”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bausch + Lomb	$5.10 billion	1.16	-$360.00 million	($0.48)	-34.62
ResMed	$5.65 billion	5.96	$1.52 billion	$10.43	22.99

ResMed has higher revenue and earnings than Bausch + Lomb. Bausch + Lomb is trading at a lower price-to-earnings ratio than ResMed, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Bausch + Lomb has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, ResMed has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Summary

ResMed beats Bausch + Lomb on 11 of the 15 factors compared between the two stocks.

About Bausch + Lomb

Bausch + Lomb Corporation operates as an eye health company in the United States, Puerto Rico, China, France, Japan, Germany, the United Kingdom, Canada, Russia, Spain, Italy, Mexico, Poland, South Korea, and internationally. It operates in three segments: Vision Care, Pharmaceuticals, and Surgical. The Vision Care segment provides contact lens that covers the spectrum of wearing modalities, including daily disposable and frequently replaced contact lenses; and contact lens care products comprising over-the-counter eye drops, eye vitamins, and mineral supplements that address various conditions, such as eye allergies, conjunctivitis, dry eye, and redness relief. Its Pharmaceuticals segment offers proprietary and generic pharmaceutical products for post-operative treatments, as well as for the treatment of glaucoma, eye inflammation, ocular hypertension, dry eyes, and retinal diseases. The Surgical segment provides medical device equipment, consumables, and technologies for the treatment of cataracts, corneal, vitreous, and retinal eye conditions; and intraocular lenses and delivery systems, phacoemulsification equipment, and other surgical instruments and devices for cataract surgery. The company sells its products and services through direct sales forces and independent distributors. Bausch + Lomb Corporation was founded in 1853 and is headquartered in Vaughan, Canada. Bausch + Lomb Corporation is a subsidiary of Bausch Health Companies Inc.

About ResMed

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients’ device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME) to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies; and MEDIFOX DAN’s software solutions. The company markets its products to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.