WallStSmart

Align Technology Inc (ALGN)vsResMed Inc (RMD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ResMed Inc generates 35% more annual revenue ($5.54B vs $4.10B). RMD leads profitability with a 27.4% profit margin vs 10.5%. ALGN appears more attractively valued with a PEG of 0.89. RMD earns a higher WallStSmart Score of 73/100 (B).

ALGN

Strong Buy

68

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 8.0Quality: 5.3
Piotroski: 3/9Altman Z: 2.59

RMD

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 9.5Value: 5.3Quality: 8.3
Piotroski: 6/9Altman Z: 4.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALGNUndervalued (+40.6%)

Margin of Safety

+40.6%

Fair Value

$332.34

Current Price

$168.78

$163.56 discount

UndervaluedFair: $332.34Overvalued
RMDOvervalued (-13.1%)

Margin of Safety

-13.1%

Fair Value

$229.58

Current Price

$206.76

$22.82 premium

UndervaluedFair: $229.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALGN3 strengths · Avg: 8.0/10
PEG RatioValuation
0.898/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

EPS GrowthGrowth
23.9%8/10

Earnings expanding 23.9% YoY

RMD4 strengths · Avg: 9.5/10
Operating MarginProfitability
35.3%10/10

Strong operational efficiency at 35.3%

Altman Z-ScoreHealth
4.3410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
25.3%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
27.4%9/10

Keeps 27 of every $100 in revenue as profit

Areas to Watch

ALGN2 concerns · Avg: 3.5/10
P/E RatioValuation
28.4x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

RMD0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : ALGN

The strongest argument for ALGN centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.89 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 27.4% and operating margin at 35.3%. Revenue growth of 10.8% demonstrates continued momentum.

Bear Case : ALGN

The primary concerns for ALGN are P/E Ratio, Piotroski F-Score.

Bear Case : RMD

No major red flags identified for RMD, but monitor valuation.

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 1.70 — expect wider price swings.

RMD is growing revenue faster at 10.8% — sustainability is the question.

RMD generates stronger free cash flow (520M), providing more financial flexibility.

Bottom Line

RMD scores higher overall (73/100 vs 68/100), backed by strong 27.4% margins and 10.8% revenue growth. ALGN offers better value entry with a 40.6% margin of safety. Both earn "Strong Buy" and "Strong 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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