ResMed Inc (RMD)vsWest Pharmaceutical Services Inc (WST)
RMD
ResMed Inc
$227.08
-2.52%
HEALTHCARE · Cap: $35.18B
WST
West Pharmaceutical Services Inc
$407.88
-1.15%
HEALTHCARE · Cap: $28.03B
Smart Verdict
WallStSmart Research — data-driven comparison
ResMed Inc generates 70% more annual revenue ($5.65B vs $3.33B). RMD leads profitability with a 27.0% profit margin vs 17.0%. RMD appears more attractively valued with a PEG of 1.34. RMD earns a higher WallStSmart Score of 65/100 (C+).
RMD
Buy65
out of 100
Grade: C+
WST
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-21.2%
Fair Value
$214.26
Current Price
$227.08
$12.82 premium
Margin of Safety
-43.9%
Fair Value
$171.03
Current Price
$407.88
$236.85 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 30.9%
Safe zone — low bankruptcy risk
Every $100 of equity generates 23 in profit
Keeps 27 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Generating 1.6B in free cash flow
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Strong operational efficiency at 22.5%
Areas to Watch
2.4% earnings growth
Trading at 9.6x book value
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 27.0% and operating margin at 30.9%. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bull Case : WST
The strongest argument for WST centers on Altman Z-Score, Debt/Equity, Operating Margin. Profitability is solid with margins at 17.0% and operating margin at 22.5%. Revenue growth of 13.8% demonstrates continued momentum.
Bear Case : RMD
The primary concerns for RMD are EPS Growth.
Bear Case : WST
The primary concerns for WST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 51.0x leaves little room for execution misses.
Key Dynamics to Monitor
WST carries more volatility with a beta of 1.13 — expect wider price swings.
WST is growing revenue faster at 13.8% — sustainability is the question.
RMD generates stronger free cash flow (1.6B), providing more financial flexibility.
Monitor MEDICAL INSTRUMENTS & SUPPLIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RMD scores higher overall (65/100 vs 56/100), backed by strong 27.0% margins. Both earn "Buy" and "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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