Pacific Biosciences of California (PACB) versus ResMed (RMD) Financial Analysis
ResMed (NYSE: RMD) and Pacific Biosciences of California (NASDAQ:PACB) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
This table compares ResMed and Pacific Biosciences of California’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pacific Biosciences of California||-95.97%||-97.50%||-59.40%|
This table compares ResMed and Pacific Biosciences of California’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ResMed||$2.07 billion||5.86||$342.28 million||$2.47||34.53|
|Pacific Biosciences of California||$90.71 million||3.41||-$74.37 million||($0.91)||-2.92|
ResMed has higher revenue and earnings than Pacific Biosciences of California. Pacific Biosciences of California is trading at a lower price-to-earnings ratio than ResMed, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for ResMed and Pacific Biosciences of California, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pacific Biosciences of California||0||2||1||0||2.33|
ResMed currently has a consensus price target of $65.83, suggesting a potential downside of 22.81%. Pacific Biosciences of California has a consensus price target of $6.27, suggesting a potential upside of 135.59%. Given Pacific Biosciences of California’s stronger consensus rating and higher possible upside, analysts clearly believe Pacific Biosciences of California is more favorable than ResMed.
Institutional and Insider Ownership
62.0% of ResMed shares are owned by institutional investors. Comparatively, 70.5% of Pacific Biosciences of California shares are owned by institutional investors. 1.8% of ResMed shares are owned by company insiders. Comparatively, 17.8% of Pacific Biosciences of California shares are owned by company 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.
Risk and Volatility
ResMed has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Pacific Biosciences of California has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.
ResMed pays an annual dividend of $1.40 per share and has a dividend yield of 1.6%. Pacific Biosciences of California does not pay a dividend. ResMed pays out 56.7% of its earnings in the form of a dividend.
ResMed beats Pacific Biosciences of California on 9 of the 15 factors compared between the two stocks.
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.
About Pacific Biosciences of California
Pacific Biosciences of California, Inc. designs, develops and manufactures sequencing systems to help scientists resolve genetically complex problems. The Company is engaged in the development, manufacturing and marketing of an integrated platform for genetic analysis. Its Single Molecule, Real-Time (SMRT) technology enables single molecule, real-time detection of biological processes. It offers The SMRT Cell, Phospholinked nucleotides and The PacBio RS II and Sequel instruments. Its SMRT technology enables the observation of deoxyribonucleic acid (DNA) synthesis as it occurs in real-time by harnessing the natural process of DNA replication, which is actuated by the DNA polymerase. Its phospholinked nucleotides have a fluorescent dye attached to the phosphate chain of the nucleotide rather than to the base. The PacBio RS II and Sequel instruments include optics, automated liquid handling, a touchscreen control interface and computational hardware and software.
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