ResMed Inc (RMD)vsWest Pharmaceutical Services Inc (WST)
RMD
ResMed Inc
$207.81
-0.77%
HEALTHCARE · Cap: $29.87B
WST
West Pharmaceutical Services Inc
$300.18
-0.17%
HEALTHCARE · Cap: $21.24B
Smart Verdict
WallStSmart Research — data-driven comparison
ResMed Inc generates 72% more annual revenue ($5.54B vs $3.22B). RMD leads profitability with a 27.4% profit margin vs 16.9%. RMD appears more attractively valued with a PEG of 1.26. RMD earns a higher WallStSmart Score of 73/100 (B).
RMD
Strong Buy73
out of 100
Grade: B
WST
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-13.4%
Fair Value
$228.91
Current Price
$207.81
$21.10 premium
Margin of Safety
-32.8%
Fair Value
$185.39
Current Price
$300.18
$114.79 premium
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 56.1% YoY
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.7%
Revenue surging 21.0% year-over-year
Areas to Watch
No major concerns identified
Expensive relative to growth rate
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 : WST
The strongest argument for WST centers on EPS Growth, Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.9% and operating margin at 21.7%. Revenue growth of 21.0% demonstrates continued momentum.
Bear Case : RMD
No major red flags identified for RMD, but monitor valuation.
Bear Case : WST
The primary concerns for WST are PEG Ratio, P/E Ratio. A P/E of 40.1x leaves little room for execution misses.
Key Dynamics to Monitor
RMD profiles as a mature stock while WST is a growth play — different risk/reward profiles.
WST carries more volatility with a beta of 1.15 — expect wider price swings.
WST is growing revenue faster at 21.0% — sustainability is the question.
RMD generates stronger free cash flow (520M), providing more financial flexibility.
Bottom Line
RMD scores higher overall (73/100 vs 67/100), backed by strong 27.4% margins and 10.8% revenue growth. 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 →West Pharmaceutical Services Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.
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