WallStSmart

Medline Inc. Class A Common Stock (MDLN)vsResMed Inc (RMD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Medline Inc. Class A Common Stock generates 413% more annual revenue ($28.43B vs $5.54B). RMD leads profitability with a 27.4% profit margin vs 4.1%. RMD trades at a lower P/E of 19.8x. RMD earns a higher WallStSmart Score of 73/100 (B).

MDLN

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 5.0Value: 6.3Quality: 6.8
Piotroski: 4/9

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

MDLNUndervalued (+68.8%)

Margin of Safety

+68.8%

Fair Value

$144.24

Current Price

$45.32

$98.92 discount

UndervaluedFair: $144.24Overvalued
RMDOvervalued (-13.4%)

Margin of Safety

-13.4%

Fair Value

$228.91

Current Price

$207.81

$21.10 premium

UndervaluedFair: $228.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MDLN1 strengths · Avg: 10.0/10
EPS GrowthGrowth
1258.0%10/10

Earnings expanding 1258.0% 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

MDLN4 concerns · Avg: 3.0/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Profit MarginProfitability
4.1%3/10

4.1% margin — thin

Free Cash FlowQuality
$-113.00M2/10

Negative free cash flow — burning cash

RMD0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : MDLN

The strongest argument for MDLN centers on EPS Growth. Revenue growth of 14.8% demonstrates continued momentum.

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 : MDLN

The primary concerns for MDLN are P/E Ratio, Return on Equity, Profit Margin. Thin 4.1% margins leave little buffer for downturns.

Bear Case : RMD

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

Key Dynamics to Monitor

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

MDLN is growing revenue faster at 14.8% — sustainability is the question.

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

Monitor MEDICAL INSTRUMENTS & SUPPLIES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RMD scores higher overall (73/100 vs 52/100), backed by strong 27.4% margins and 10.8% revenue growth. MDLN offers better value entry with a 68.8% 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.

Medline Inc. Class A Common Stock

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Medline Inc. manufactures med-surg products serving the hospital, surgery centers, physician offices, post-acute facilities, and nursing home sites of care in the United States and Internationally. The company is headquartered in Northfield, Illinois.

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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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