ResMed (RMD) vs. Its Rivals Head-To-Head Survey

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

Institutional and Insider Ownership

55.0% of ResMed shares are held by institutional investors. Comparatively, 40.5% of shares of all “Healthcare Equipment & Supplies” companies are held by institutional investors. 0.6% of ResMed shares are held by insiders. Comparatively, 14.8% of shares of all “Healthcare Equipment & Supplies” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares ResMed and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ResMed	$5.65 billion	$1.52 billion	21.80
ResMed Competitors	$1.91 billion	$138.76 million	9.37

ResMed has higher revenue and earnings than its competitors. ResMed is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ResMed and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ResMed	0	11	7	0	2.39
ResMed Competitors	4266	10523	18283	825	2.46

ResMed currently has a consensus price target of $253.69, indicating a potential upside of 6.01%. As a group, “Healthcare Equipment & Supplies” companies have a potential upside of 19.90%. Given ResMed’s competitors stronger consensus rating and higher possible upside, analysts clearly believe ResMed has less favorable growth aspects than its competitors.

Profitability

This table compares ResMed and its competitors’ 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%

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 53.0% of their earnings in the form of a dividend. ResMed has increased its dividend for 13 consecutive years.

Volatility & Risk

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

Summary

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

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.