ResMed Inc (RMD)vsTenet Healthcare Corporation (THC)
RMD
ResMed Inc
$226.31
-0.82%
HEALTHCARE · Cap: $33.31B
THC
Tenet Healthcare Corporation
$200.04
+0.21%
HEALTHCARE · Cap: $17.58B
Smart Verdict
WallStSmart Research — data-driven comparison
Tenet Healthcare Corporation generates 295% more annual revenue ($21.31B vs $5.40B). RMD leads profitability with a 27.5% profit margin vs 6.6%. RMD appears more attractively valued with a PEG of 1.39. RMD earns a higher WallStSmart Score of 70/100 (B).
RMD
Strong Buy70
out of 100
Grade: B
THC
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+14.4%
Fair Value
$303.30
Current Price
$226.31
$76.99 discount
Margin of Safety
+68.8%
Fair Value
$724.93
Current Price
$200.04
$524.89 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 35.2%
Safe zone — low bankruptcy risk
Every $100 of equity generates 26 in profit
Keeps 28 of every $100 in revenue as profit
Every $100 of equity generates 27 in profit
Attractively priced relative to earnings
Earnings expanding 27.6% YoY
Areas to Watch
No major concerns identified
Distress zone — elevated risk
6.6% margin — thin
Expensive relative to growth rate
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 27.5% and operating margin at 35.2%. Revenue growth of 11.0% demonstrates continued momentum.
Bull Case : THC
The strongest argument for THC centers on Return on Equity, P/E Ratio, EPS Growth.
Bear Case : RMD
No major red flags identified for RMD, but monitor valuation.
Bear Case : THC
The primary concerns for THC are Altman Z-Score, Profit Margin, PEG Ratio.
Key Dynamics to Monitor
RMD profiles as a mature stock while THC is a value play — different risk/reward profiles.
THC carries more volatility with a beta of 1.41 — expect wider price swings.
RMD is growing revenue faster at 11.0% — sustainability is the question.
THC generates stronger free cash flow (367M), providing more financial flexibility.
Bottom Line
RMD scores higher overall (70/100 vs 66/100), backed by strong 27.5% margins and 11.0% revenue growth. THC offers better value entry with a 68.8% margin of safety. Both earn "Strong Buy" and "Strong 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.
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 →Tenet Healthcare Corporation
HEALTHCARE · MEDICAL CARE FACILITIES · USA
Tenet Healthcare Corporation is a diversified health services company. The company is headquartered in Dallas, Texas.
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