WallStSmart

Align Technology Inc (ALGN)vsResMed Inc (RMD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ResMed Inc generates 37% more annual revenue ($5.65B vs $4.14B). RMD leads profitability with a 27.0% profit margin vs 10.0%. ALGN appears more attractively valued with a PEG of 0.62. RMD earns a higher WallStSmart Score of 67/100 (B-).

ALGN

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 6.5Value: 8.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.76

RMD

Strong Buy

67

out of 100

Grade: B-

Growth: 6.0Profit: 9.0Value: 4.7Quality: 9.0
Piotroski: 5/9Altman Z: 4.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALGNUndervalued (+32.8%)

Margin of Safety

+32.8%

Fair Value

$293.97

Current Price

$153.29

$140.68 discount

UndervaluedFair: $293.97Overvalued
RMDSignificantly Overvalued (-24.1%)

Margin of Safety

-24.1%

Fair Value

$209.18

Current Price

$221.97

$12.79 premium

UndervaluedFair: $209.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALGN3 strengths · Avg: 8.7/10
Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.628/10

Growing faster than its price suggests

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

RMD6 strengths · Avg: 9.2/10
Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Altman Z-ScoreHealth
4.5310/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
27.0%9/10

Keeps 27 of every $100 in revenue as profit

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.65B8/10

Generating 1.6B in free cash flow

Areas to Watch

ALGN3 concerns · Avg: 3.3/10
P/E RatioValuation
25.5x4/10

Moderate valuation

Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

EPS GrowthGrowth
-12.1%2/10

Earnings declined 12.1%

RMD1 concerns · Avg: 4.0/10
EPS GrowthGrowth
2.4%4/10

2.4% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : ALGN

The strongest argument for ALGN centers on Debt/Equity, PEG Ratio, Price/Book. PEG of 0.62 suggests the stock is reasonably priced for its growth.

Bull Case : RMD

The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.0% and operating margin at 30.9%. PEG of 1.31 suggests the stock is reasonably priced for its growth.

Bear Case : ALGN

The primary concerns for ALGN are P/E Ratio, Revenue Growth, EPS Growth.

Bear Case : RMD

The primary concerns for RMD are EPS Growth.

Key Dynamics to Monitor

ALGN profiles as a value stock while RMD is a mature play — different risk/reward profiles.

ALGN carries more volatility with a beta of 1.64 — expect wider price swings.

RMD is growing revenue faster at 8.6% — sustainability is the question.

RMD generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

RMD scores higher overall (67/100 vs 56/100), backed by strong 27.0% margins. ALGN offers better value entry with a 32.8% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Align Technology Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Align Technology is a manufacturer of 3D digital scanners and the Invisalign clear aligners used in orthodontics. It is headquartered in San Jose, California.

ResMed Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.

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