ResMed (NYSE: RMD) is one of 87 public companies in the “Advanced Medical Equipment & Technology” industry, but how does it compare to its rivals? We will compare ResMed to related businesses based on the strength of its dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Risk & Volatility

ResMed has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, ResMed’s rivals have a beta of 1.54, suggesting that their average stock price is 54% more volatile than the S&P 500.

Profitability

This table compares ResMed and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ResMed 16.58% 21.53% 11.90%
ResMed Competitors -299.57% -36.17% -12.71%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ResMed and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ResMed 4 4 3 0 1.91
ResMed Competitors 267 1867 3359 108 2.59

ResMed presently has a consensus price target of $64.50, indicating a potential downside of 22.40%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 7.16%. Given ResMed’s rivals stronger consensus rating and higher probable upside, analysts clearly believe ResMed has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares ResMed and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
ResMed $2.07 billion $342.28 million 33.65
ResMed Competitors $2.13 billion $221.25 million 2.53

ResMed’s rivals have higher revenue, but lower earnings than ResMed. ResMed is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

59.7% of ResMed shares are owned by institutional investors. Comparatively, 51.1% of shares of all “Advanced Medical Equipment & Technology” companies are owned by institutional investors. 1.8% of ResMed shares are owned by insiders. Comparatively, 18.7% of shares of all “Advanced Medical Equipment & Technology” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

ResMed pays an annual dividend of $1.40 per share and has a dividend yield of 1.7%. ResMed pays out 56.7% of its earnings in the form of a dividend. As a group, “Advanced Medical Equipment & Technology” companies pay a dividend yield of 0.8% and pay out 25.0% of their earnings in the form of a dividend.

Summary

ResMed rivals beat ResMed on 8 of the 15 factors compared.

ResMed Company Profile

ResMed Inc. is a holding company. The Company is engaged in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (SDB), chronic obstructive pulmonary disease (COPD), neuromuscular disease and other diseases. SDB includes obstructive sleep apnea (OSA) and other respiratory disorders that occur during sleep. Its cloud-based software digital health applications, along with its devices, are designed to provide connected care to improve patient outcomes. The Company’s portfolio of products includes devices, diagnostic products, mask systems, headgear and other accessories, dental devices, portable oxygen concentrators (POCs) and cloud-based software informatics solutions. The Company produces Continuous Positive Airway Pressure (CPAP), Variable Positive Airway Pressure (VPAP) and AutoSet systems for the titration and treatment of SDB.

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