WallStSmart

The Cooper Companies, Inc (COO)vsResMed Inc (RMD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ResMed Inc generates 31% more annual revenue ($5.54B vs $4.23B). RMD leads profitability with a 27.4% profit margin vs 5.6%. COO appears more attractively valued with a PEG of 0.68. RMD earns a higher WallStSmart Score of 73/100 (B).

COO

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 3.5Value: 6.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.65

RMD

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 9.0Value: 4.7Quality: 9.5
Piotroski: 6/9Altman Z: 4.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

COOUndervalued (+60.3%)

Margin of Safety

+60.3%

Fair Value

$209.19

Current Price

$65.42

$143.77 discount

UndervaluedFair: $209.19Overvalued
RMDSignificantly Overvalued (-27.0%)

Margin of Safety

-27.0%

Fair Value

$204.42

Current Price

$196.04

$8.38 premium

UndervaluedFair: $204.42Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

COO4 strengths · Avg: 8.3/10
Debt/EquityHealth
0.309/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.688/10

Growing faster than its price suggests

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

EPS GrowthGrowth
26.9%8/10

Earnings expanding 26.9% YoY

RMD5 strengths · Avg: 9.4/10
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
23.4%9/10

Every $100 of equity generates 23 in profit

Profit MarginProfitability
27.4%9/10

Keeps 27 of every $100 in revenue as profit

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Areas to Watch

COO4 concerns · Avg: 2.3/10
Return on EquityProfitability
2.9%3/10

ROE of 2.9% — below average capital efficiency

Profit MarginProfitability
5.6%3/10

5.6% margin — thin

P/E RatioValuation
57.5x2/10

Premium valuation, high expectations priced in

Operating MarginProfitability
-2.9%1/10

Operating margin of -2.9%

RMD0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : COO

The strongest argument for COO centers on Debt/Equity, PEG Ratio, Price/Book. PEG of 0.68 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 : COO

The primary concerns for COO are Return on Equity, Profit Margin, P/E Ratio. A P/E of 57.5x leaves little room for execution misses.

Bear Case : RMD

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

Key Dynamics to Monitor

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

COO carries more volatility with a beta of 0.87 — 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 59/100), backed by strong 27.4% margins and 10.8% revenue growth. COO offers better value entry with a 60.3% 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.

The Cooper Companies, Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

The Cooper Companies, Inc., branded as CooperCompanies, is a global medical device company headquartered in San Ramon, California.

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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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