Financial Comparison: ResMed (RMD) and Its Peers

ResMed (NYSE:RMD) is one of 511 publicly-traded companies in the “Healthcare Equipment & Supplies” industry, but how does it weigh in compared to its rivals? We will compare ResMed to similar businesses based on the strength of its dividends, analyst recommendations, risk, institutional ownership, profitability, valuation and earnings.

Risk & Volatility

ResMed has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, ResMed’s rivals have a beta of 2.57, meaning that their average share price is 157% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
ResMed	$5.65 billion	$1.52 billion	21.22
ResMed Competitors	$1.88 billion	$139.14 million	12.53

ResMed has higher revenue and earnings than its rivals. 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.

Dividends

ResMed pays an annual dividend of $2.64 per share and has a dividend yield of 1.1%. ResMed pays out 24.0% of its earnings in the form of a dividend. As a group, “Healthcare Equipment & Supplies” companies pay a dividend yield of 2.1% and pay out 40.4% of their earnings in the form of a dividend. ResMed has raised its dividend for 13 consecutive years.

Insider & Institutional Ownership

55.0% of ResMed shares are owned by institutional investors. Comparatively, 40.6% of shares of all “Healthcare Equipment & Supplies” companies are owned by institutional investors. 0.6% of ResMed shares are owned by company insiders. Comparatively, 15.0% of shares of all “Healthcare Equipment & Supplies” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for ResMed and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ResMed	0	11	7	0	2.39
ResMed Competitors	4285	10564	18343	830	2.46

ResMed presently has a consensus target price of $253.69, suggesting a potential upside of 8.91%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 21.79%. Given ResMed’s rivals stronger consensus rating and higher probable upside, analysts clearly believe ResMed has less favorable growth aspects than its rivals.

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	27.79%	26.42%	19.43%
ResMed Competitors	-276.78%	-149.08%	-21.73%

Summary

ResMed beats its rivals on 8 of the 15 factors compared.

ResMed Company Profile

ResMed is a medical technology company that develops products and software for people with sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions. Its devices include continuous positive airway pressure (CPAP) and bilevel machines, ventilators and related masks and accessories. The company also provides cloud-connected software for managing sleep and respiratory care, along with digital tools used by home medical equipment providers and post-acute care organizations.