Align Technology, Inc. (ALGN) vs ResMed Inc. (RMD)

Align Technology, Inc. and ResMed Inc. are both Medical Instruments & Supplies companies. ResMed Inc. is the larger, with a market value of $33.7B against $11.3B — 3.0× the size. ResMed Inc. trades at the lower P/E: 21.7× against 23.1×. ResMed Inc. grew revenue faster over the last twelve months: 9.04% against 4.42%. ResMed Inc. has the higher net margin (27.8% vs 11.8%) and the higher return on invested capital (22.8% vs 12.3%). Across the 22 metrics below, ResMed Inc. leads on 13 and Align Technology, Inc. on 9.

Valuation

Metric ALGN RMD Medical Instruments & Supplies median
P/E 23.08 21.69 30.28
P/S 2.71 5.96 2.49
P/B 2.66 5.74 2.34
Price to free cash flow 16.84 21.50 23.49
EV/EBITDA 12.64 15.66 14.87
EV/Sales 2.44 5.82 2.75
Earnings yield 4.33% 4.61% 0.00%
Free cash flow yield 5.94% 4.65% 0.59%

Profitability

Metric ALGN RMD Medical Instruments & Supplies median
Gross margin 69.14% 61.13% 53.60%
Operating margin 14.92% 33.02% 1.97%
Net margin 11.83% 27.79% 0.00%
Free cash flow margin 18.03% 27.71% 2.36%
Return on equity 0.00% 26.40% 0.00%
Return on assets 7.71% 19.29% 0.00%
Return on invested capital 12.27% 22.81% 0.13%

Growth

Metric ALGN RMD Medical Instruments & Supplies median
Revenue growth (TTM) 4.42% 9.04% 8.97%
EPS growth (last fiscal year) 0.53% 9.67% 6.51%
Revenue growth, 5-year CAGR 10.30% 12.08% 8.85%
Net income growth, 5-year CAGR (25.40%) 26.27% 0.00%

Health

Metric ALGN RMD Medical Instruments & Supplies median
Debt to equity 0.00 0.04 0.10
Current ratio 1.42 2.65 2.47
Net debt to EBITDA (1.40) (0.50) 0.97

Dividend

Metric ALGN RMD Medical Instruments & Supplies median
Dividend yield — 1.03% 1.02%
Payout ratio — 0.22 0.27

Size

Metric ALGN RMD Medical Instruments & Supplies median
Market cap 11.32b 33.66b 1.71b

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