WallStSmart

Nephros Inc (NEPH)vsResMed Inc (RMD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ResMed Inc generates 28857% more annual revenue ($5.54B vs $19.12M). RMD leads profitability with a 27.4% profit margin vs 4.1%. RMD trades at a lower P/E of 18.8x. RMD earns a higher WallStSmart Score of 73/100 (B).

NEPH

Avoid

32

out of 100

Grade: F

Growth: 6.0Profit: 4.5Value: 5.0Quality: 6.5
Piotroski: 3/9Altman Z: -10.50

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

NEPHUndervalued (+6.9%)

Margin of Safety

+6.9%

Fair Value

$4.34

Current Price

$3.42

$0.92 discount

UndervaluedFair: $4.34Overvalued
RMDSignificantly Overvalued (-26.9%)

Margin of Safety

-26.9%

Fair Value

$204.63

Current Price

$196.04

$8.59 premium

UndervaluedFair: $204.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NEPH1 strengths · Avg: 10.0/10
Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

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

NEPH4 concerns · Avg: 3.0/10
Market CapQuality
$36.80M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

Profit MarginProfitability
4.1%3/10

4.1% margin — thin

Operating MarginProfitability
1.9%3/10

Operating margin of 1.9%

RMD0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : NEPH

The strongest argument for NEPH centers on Debt/Equity.

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 : NEPH

The primary concerns for NEPH are Market Cap, Return on Equity, Profit Margin. A P/E of 48.4x leaves little room for execution misses. 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

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

NEPH carries more volatility with a beta of 1.50 — 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 32/100), backed by strong 27.4% margins and 10.8% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Nephros Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Nephros, Inc., a commercial stage company, develops and sells water solutions to the medical and commercial markets in the United States. The company is headquartered in South Orange, New Jersey.

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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