Intuitive Surgical, Inc. (ISRG) vs ResMed Inc. (RMD)

Intuitive Surgical, Inc. and ResMed Inc. are both Medical Instruments & Supplies companies. Intuitive Surgical, Inc. is the larger, with a market value of $162.4B against $33.7B — 4.8× the size. ResMed Inc. trades at the lower P/E: 21.7× against 55.7×. Intuitive Surgical, Inc. grew revenue faster over the last twelve months: 20.5% against 9.04%. ResMed Inc. has the higher net margin (27.8% vs 25.5%) and the higher return on invested capital (22.8% vs 17.0%). Across the 22 metrics below, ResMed Inc. leads on 14 and Intuitive Surgical, Inc. on 8.

Valuation

Metric ISRG RMD Medical Instruments & Supplies median
P/E 55.70 21.69 30.28
P/S 14.04 5.96 2.49
P/B 10.08 5.74 2.34
Price to free cash flow 44.60 21.50 23.49
EV/EBITDA 38.32 15.66 14.87
EV/Sales 13.69 5.82 2.75
Earnings yield 1.80% 4.61% 0.00%
Free cash flow yield 2.24% 4.65% 0.59%

Profitability

Metric ISRG RMD Medical Instruments & Supplies median
Gross margin 67.19% 61.13% 53.60%
Operating margin 28.37% 33.02% 1.97%
Net margin 25.54% 27.79% 0.00%
Free cash flow margin 31.47% 27.71% 2.36%
Return on equity 17.84% 26.40% 0.00%
Return on assets 15.28% 19.29% 0.00%
Return on invested capital 17.00% 22.81% 0.13%

Growth

Metric ISRG RMD Medical Instruments & Supplies median
Revenue growth (TTM) 20.45% 9.04% 8.97%
EPS growth (last fiscal year) 22.59% 9.67% 6.51%
Revenue growth, 5-year CAGR 18.22% 12.08% 8.85%
Net income growth, 5-year CAGR 21.91% 26.27% 0.00%

Health

Metric ISRG RMD Medical Instruments & Supplies median
Debt to equity 0.00 0.04 0.10
Current ratio 3.33 2.65 2.47
Net debt to EBITDA (1.64) (0.50) 0.97

Dividend

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

Size

Metric ISRG RMD Medical Instruments & Supplies median
Market cap 162.41b 33.66b 1.71b

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