ResMed Inc (RMD)vsSonos Inc (SONO)
RMD
ResMed Inc
$206.76
-0.06%
HEALTHCARE · Cap: $30.01B
SONO
Sonos Inc
$15.06
+1.14%
TECHNOLOGY · Cap: $1.77B
Smart Verdict
WallStSmart Research — data-driven comparison
ResMed Inc generates 279% more annual revenue ($5.54B vs $1.46B). RMD leads profitability with a 27.4% profit margin vs 1.6%. RMD trades at a lower P/E of 19.9x. RMD earns a higher WallStSmart Score of 73/100 (B).
RMD
Strong Buy73
out of 100
Grade: B
SONO
Hold45
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
+43.7%
Fair Value
$29.31
Current Price
$15.06
$14.25 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
Earnings expanding 87.5% YoY
Areas to Watch
No major concerns identified
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Premium valuation, high expectations priced in
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 : SONO
The strongest argument for SONO centers on EPS Growth.
Bear Case : RMD
No major red flags identified for RMD, but monitor valuation.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 87.6x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
RMD profiles as a mature stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.94 — 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 45/100), backed by strong 27.4% margins and 10.8% revenue growth. SONO offers better value entry with a 43.7% 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 →Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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