ResMed Inc (RMD)vsStarbucks Corporation (SBUX)
RMD
ResMed Inc
$206.76
-0.06%
HEALTHCARE · Cap: $30.01B
SBUX
Starbucks Corporation
$104.93
+0.64%
CONSUMER CYCLICAL · Cap: $118.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 595% more annual revenue ($38.47B vs $5.54B). RMD leads profitability with a 27.4% profit margin vs 3.9%. RMD appears more attractively valued with a PEG of 1.23. RMD earns a higher WallStSmart Score of 73/100 (B).
RMD
Strong Buy73
out of 100
Grade: B
SBUX
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-13.1%
Fair Value
$229.58
Current Price
$206.76
$22.82 premium
Margin of Safety
+26.6%
Fair Value
$135.09
Current Price
$104.93
$30.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Large-cap with strong market position
Earnings expanding 32.6% YoY
Areas to Watch
No major concerns identified
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : SBUX
The strongest argument for SBUX centers on Market Cap, EPS Growth.
Bear Case : RMD
No major red flags identified for RMD, but monitor valuation.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 79.6x leaves little room for execution misses. Thin 3.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
RMD profiles as a mature stock while SBUX is a value play — different risk/reward profiles.
SBUX carries more volatility with a beta of 1.01 — 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 49/100), backed by strong 27.4% margins and 10.8% revenue growth. SBUX offers better value entry with a 26.6% 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.
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 →Starbucks Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.
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