ResMed Inc (RMD)vsVertex Pharmaceuticals Inc (VRTX)
RMD
ResMed Inc
$226.31
-0.82%
HEALTHCARE · Cap: $33.31B
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Vertex Pharmaceuticals Inc generates 122% more annual revenue ($12.00B vs $5.40B). VRTX leads profitability with a 32.9% profit margin vs 27.5%. 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
VRTX
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
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 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
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
Areas to Watch
No major concerns identified
Expensive relative to growth rate
Moderate valuation
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 27.5% and operating margin at 35.2%. Revenue growth of 11.0% demonstrates continued momentum.
Bull Case : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
Bear Case : RMD
No major red flags identified for RMD, but monitor valuation.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
RMD carries more volatility with a beta of 0.89 — expect wider price swings.
RMD is growing revenue faster at 11.0% — sustainability is the question.
VRTX generates stronger free cash flow (349M), providing more financial flexibility.
Monitor MEDICAL INSTRUMENTS & SUPPLIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RMD scores higher overall (70/100 vs 66/100), backed by strong 27.5% margins and 11.0% revenue growth. VRTX offers better value entry with a 36.5% 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 →Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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