ResMed (NYSE: RMD) and Invivo Therapeutics Holdings Corp (OTCMKTS:NVIV) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Profitability

This table compares ResMed and Invivo Therapeutics Holdings Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ResMed 16.56% 21.99% 11.86%
Invivo Therapeutics Holdings Corp N/A -118.45% -96.82%

Valuation and Earnings

This table compares ResMed and Invivo Therapeutics Holdings Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ResMed $2.07 billion 5.24 $568.89 million $2.41 31.62
Invivo Therapeutics Holdings Corp N/A N/A -$25.77 million N/A N/A

ResMed has higher revenue and earnings than Invivo Therapeutics Holdings Corp.

Dividends

ResMed pays an annual dividend of $1.40 per share and has a dividend yield of 1.8%. Invivo Therapeutics Holdings Corp does not pay a dividend. ResMed pays out 58.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for ResMed and Invivo Therapeutics Holdings Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ResMed 3 5 2 0 1.90
Invivo Therapeutics Holdings Corp 0 1 0 0 2.00

ResMed presently has a consensus price target of $64.80, indicating a potential downside of 14.97%. Invivo Therapeutics Holdings Corp has a consensus price target of $6.00, indicating a potential upside of 300.00%. Given Invivo Therapeutics Holdings Corp’s stronger consensus rating and higher possible upside, analysts plainly believe Invivo Therapeutics Holdings Corp is more favorable than ResMed.

Insider & Institutional Ownership

60.1% of ResMed shares are held by institutional investors. 1.8% of ResMed shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

ResMed beats Invivo Therapeutics Holdings Corp on 9 of the 12 factors compared between the two stocks.

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.

Invivo Therapeutics Holdings Corp Company Profile

InVivo Therapeutics Holdings Corp., formerly Design Source, Inc., is a research and clinical-stage biomaterials and biotechnology company. The Company is engaged in developing and commercializing biopolymer-scaffolding devices for the treatment of spinal cord injuries (SCI). The Company’s approach to treating acute SCIs is based on its investigational Neuro Spinal Scaffold implant, an investigational bioresorbable polymer scaffold that is designed for implantation at the site of injury within a spinal cord contusion and is intended to treat acute spinal cord injury. The Neuro-Spinal Scaffold consists of biocompatible and bioresorbable polymers, which include poly lactic-co-glycolic acid (PLGA) and Poly-L-Lysine (PLL). The Company is also evaluating other technologies and therapeutics that may be complementary to its development of the Neuro-Spinal Scaffold implant. The Company has a clinical development program for acute SCI and a preclinical development program for chronic SCI.

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