WallStSmart

Embecta Corp (EMBC)vsResMed Inc (RMD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ResMed Inc generates 455% more annual revenue ($5.65B vs $1.02B). RMD leads profitability with a 27.0% profit margin vs 8.6%. EMBC trades at a lower P/E of 3.4x. RMD earns a higher WallStSmart Score of 65/100 (C+).

EMBC

Hold

43

out of 100

Grade: D

Growth: 2.0Profit: 6.5Value: 5.7Quality: 7.0
Piotroski: 5/9Altman Z: 1.56

RMD

Buy

65

out of 100

Grade: C+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EMBCSignificantly Overvalued (-41.7%)

Margin of Safety

-41.7%

Fair Value

$7.10

Current Price

$5.29

$1.81 premium

UndervaluedFair: $7.10Overvalued
RMDSignificantly Overvalued (-24.1%)

Margin of Safety

-24.1%

Fair Value

$209.18

Current Price

$224.99

$15.81 premium

UndervaluedFair: $209.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EMBC3 strengths · Avg: 9.3/10
P/E RatioValuation
3.4x10/10

Attractively priced relative to earnings

Debt/EquityHealth
-2.4510/10

Conservative balance sheet, low leverage

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

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

EMBC4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.564/10

Distress zone — elevated risk

Market CapQuality
$279.90M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Revenue GrowthGrowth
-8.1%2/10

Revenue declined 8.1%

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

2.4% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : EMBC

The strongest argument for EMBC centers on P/E Ratio, Debt/Equity, Operating Margin.

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 1.33 suggests the stock is reasonably priced for its growth.

Bear Case : EMBC

The primary concerns for EMBC are Altman Z-Score, Market Cap, Return on Equity.

Bear Case : RMD

The primary concerns for RMD are EPS Growth.

Key Dynamics to Monitor

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

EMBC carries more volatility with a beta of 0.85 — 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 (65/100 vs 43/100), backed by strong 27.0% margins. Both earn "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.

Embecta Corp

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Embecta Corp (EMBC) is a leading medical technology company specializing in innovative insulin delivery systems aimed at enhancing diabetes management. Born from a spin-off of Becton, Dickinson and Company, Embecta provides a comprehensive portfolio of advanced products, including cutting-edge insulin pens and syringes tailored to improve patient outcomes. With a robust focus on operational excellence and customer satisfaction, Embecta is well-positioned to capitalize on growth opportunities in the rapidly expanding diabetes care market, strengthening its leadership in this vital sector.

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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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