WallStSmart

Embecta Corp (EMBC)vsResMed Inc (RMD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ResMed Inc generates 400% more annual revenue ($5.40B vs $1.08B). RMD leads profitability with a 27.5% profit margin vs 12.9%. EMBC trades at a lower P/E of 3.8x. RMD earns a higher WallStSmart Score of 70/100 (B).

EMBC

Buy

56

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 8.3Quality: 7.5
Piotroski: 5/9Altman Z: 1.56

RMD

Strong Buy

70

out of 100

Grade: B

Growth: 6.7Profit: 9.5Value: 8.7Quality: 8.3
Piotroski: 6/9Altman Z: 4.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EMBCUndervalued (+90.9%)

Margin of Safety

+90.9%

Fair Value

$110.45

Current Price

$9.00

$101.45 discount

UndervaluedFair: $110.45Overvalued
RMDUndervalued (+14.4%)

Margin of Safety

+14.4%

Fair Value

$303.30

Current Price

$226.31

$76.99 discount

UndervaluedFair: $303.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EMBC4 strengths · Avg: 9.5/10
P/E RatioValuation
3.8x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
82.7%10/10

Earnings expanding 82.7% YoY

Debt/EquityHealth
-2.3210/10

Conservative balance sheet, low leverage

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

RMD4 strengths · Avg: 9.5/10
Operating MarginProfitability
35.2%10/10

Strong operational efficiency at 35.2%

Altman Z-ScoreHealth
4.3410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
25.7%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
27.5%9/10

Keeps 28 of every $100 in revenue as profit

Areas to Watch

EMBC4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.564/10

Distress zone — elevated risk

Market CapQuality
$526.47M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Revenue GrowthGrowth
-0.3%2/10

Revenue declined 0.3%

RMD0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : EMBC

The strongest argument for EMBC centers on P/E Ratio, EPS Growth, Debt/Equity.

Bull 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.

Bear Case : EMBC

The primary concerns for EMBC are Altman Z-Score, Market Cap, Return on Equity.

Bear Case : RMD

No major red flags identified for RMD, but monitor valuation.

Key Dynamics to Monitor

EMBC profiles as a declining stock while RMD is a mature play — different risk/reward profiles.

EMBC carries more volatility with a beta of 1.06 — expect wider price swings.

RMD is growing revenue faster at 11.0% — sustainability is the question.

RMD generates stronger free cash flow (311M), providing more financial flexibility.

Bottom Line

RMD scores higher overall (70/100 vs 56/100), backed by strong 27.5% margins and 11.0% revenue growth. EMBC offers better value entry with a 90.9% margin of safety. Both earn "Strong 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.

Embecta Corp

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

Embecta Corp (EMBC) is a leading global medical technology firm dedicated to advancing diabetes management through its cutting-edge insulin delivery solutions. As a spin-off from Becton, Dickinson and Company, Embecta leverages innovative technologies and a comprehensive product portfolio—including insulin pens and syringes—to enhance patient care and health outcomes. Committed to operational excellence and customer-centric strategies, the company is strategically positioned to capitalize on growth opportunities in the fast-evolving diabetes care market. With a focus on improving patient experiences, Embecta aims to drive sustainable development and solidify its leadership in the industry.

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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.

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