ResMed (NYSE: RMD) is one of 82 public companies in the “Advanced Medical Equipment & Technology” industry, but how does it compare to its rivals? We will compare ResMed to similar companies based on the strength of its dividends, analyst recommendations, risk, earnings, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

60.1% of ResMed shares are owned by institutional investors. Comparatively, 51.0% of shares of all “Advanced Medical Equipment & Technology” companies are owned by institutional investors. 1.8% of ResMed shares are owned by company insiders. Comparatively, 18.6% of shares of all “Advanced Medical Equipment & Technology” companies are owned by company 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.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
ResMed $2.07 billion $568.89 million 32.73
ResMed Competitors $2.02 billion $430.74 million -66.92

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.

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 16.56% 21.99% 11.86%
ResMed Competitors -327.99% -35.84% -12.54%

Volatility and Risk

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 0.89, meaning that their average share price is 11% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ResMed 3 5 2 0 1.90
ResMed Competitors 256 1819 3260 105 2.59

ResMed currently has a consensus price target of $64.80, suggesting a potential downside of 17.84%. As a group, “Advanced Medical Equipment & Technology” companies have a potential downside of 5.50%. Given ResMed’s rivals stronger consensus rating and higher probable upside, analysts plainly believe ResMed has less favorable growth aspects than its rivals.

Dividends

ResMed pays an annual dividend of $1.40 per share and has a dividend yield of 1.8%. ResMed pays out 58.1% of its earnings in the form of a dividend. As a group, “Advanced Medical Equipment & Technology” companies pay a dividend yield of 0.9% and pay out 26.3% of their earnings in the form of a dividend.

Summary

ResMed beats its rivals 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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