ResMed Inc (RMD)vsWest Pharmaceutical Services Inc (WST)
RMD
ResMed Inc
$225.99
-0.62%
HEALTHCARE · Cap: $32.99B
WST
West Pharmaceutical Services Inc
$237.03
-1.37%
HEALTHCARE · Cap: $17.09B
Smart Verdict
WallStSmart Research — data-driven comparison
ResMed Inc generates 76% more annual revenue ($5.40B vs $3.07B). RMD leads profitability with a 27.5% profit margin vs 16.1%. 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
WST
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+14.3%
Fair Value
$303.00
Current Price
$225.99
$77.01 discount
Margin of Safety
-257.4%
Fair Value
$68.88
Current Price
$237.03
$168.15 premium
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
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.6%
Areas to Watch
No major concerns identified
Premium valuation, high expectations priced in
2.1% earnings growth
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 : WST
The strongest argument for WST centers on Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.1% and operating margin at 21.6%.
Bear Case : RMD
No major red flags identified for RMD, but monitor valuation.
Bear Case : WST
The primary concerns for WST are P/E Ratio, EPS Growth, PEG Ratio.
Key Dynamics to Monitor
WST carries more volatility with a beta of 1.18 — 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.
Monitor MEDICAL INSTRUMENTS & SUPPLIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RMD scores higher overall (70/100 vs 55/100), backed by strong 27.5% margins and 11.0% revenue growth. 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.
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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