Cardinal Health Inc (CAH)vsResMed Inc (RMD)
CAH
Cardinal Health Inc
$183.65
-0.88%
HEALTHCARE · Cap: $43.39B
RMD
ResMed Inc
$206.76
-0.06%
HEALTHCARE · Cap: $30.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Cardinal Health Inc generates 4428% more annual revenue ($250.74B vs $5.54B). RMD leads profitability with a 27.4% profit margin vs 0.6%. RMD appears more attractively valued with a PEG of 1.23. RMD earns a higher WallStSmart Score of 73/100 (B).
CAH
Hold47
out of 100
Grade: D+
RMD
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.9%
Fair Value
$859.62
Current Price
$183.65
$675.97 discount
Margin of Safety
-13.1%
Fair Value
$229.58
Current Price
$206.76
$22.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Generating 1.7B in free cash flow
Strong operational efficiency at 35.3%
Safe zone — low bankruptcy risk
Every $100 of equity generates 25 in profit
Keeps 27 of every $100 in revenue as profit
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
0.6% margin — thin
Operating margin of 1.4%
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : CAH
The strongest argument for CAH centers on Altman Z-Score, Free Cash Flow. Revenue growth of 11.0% demonstrates continued momentum. PEG of 1.25 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 : CAH
The primary concerns for CAH are P/E Ratio, Return on Equity, Profit Margin. Thin 0.6% margins leave little buffer for downturns.
Bear Case : RMD
No major red flags identified for RMD, but monitor valuation.
Key Dynamics to Monitor
CAH profiles as a value stock while RMD is a mature play — different risk/reward profiles.
RMD carries more volatility with a beta of 0.84 — expect wider price swings.
CAH is growing revenue faster at 11.0% — sustainability is the question.
CAH generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
RMD scores higher overall (73/100 vs 47/100), backed by strong 27.4% margins and 10.8% revenue growth. CAH offers better value entry with a 73.9% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cardinal Health Inc
HEALTHCARE · MEDICAL DISTRIBUTION · USA
Cardinal Health, Inc. is an American multinational health care services company.
Visit Website →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.
Visit Website →Compare with Other MEDICAL DISTRIBUTION Stocks
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