ResMed Inc. (RMD) vs West Pharmaceutical Services, Inc. (WST)

ResMed Inc. and West Pharmaceutical Services, Inc. are both Medical Instruments & Supplies companies. ResMed Inc. is the larger, with a market value of $34.1B against $27.0B — 1.3× the size. ResMed Inc. trades at the lower P/E: 22.8× against 48.7×. West Pharmaceutical Services, Inc. grew revenue faster over the last twelve months: 12.4% against 9.85%. ResMed Inc. has the higher net margin (26.9% vs 17.0%) and the higher return on invested capital (21.4% vs 15.4%). Both pay a dividend; ResMed Inc. yields more (1.03% vs 0.23%). Across the 23 metrics below, ResMed Inc. leads on 21 and West Pharmaceutical Services, Inc. on 2.

Valuation

Metric RMD WST Medical Instruments & Supplies median
P/E 22.85 48.66 33.75
P/S 6.15 8.15 2.52
P/B 5.28 9.07 2.48
Price to free cash flow 21.35 62.60 25.19
EV/EBITDA 15.82 31.19 14.62
EV/Sales 5.96 8.08 2.88
Earnings yield 4.38% 2.06% (2.67%)
Free cash flow yield 4.68% 1.60% 0.09%

Profitability

Metric RMD WST Medical Instruments & Supplies median
Gross margin 61.06% 36.79% 54.29%
Operating margin 33.37% 20.45% 1.07%
Net margin 26.94% 16.98% (1.61%)
Free cash flow margin 28.81% 13.13% 1.08%
Return on equity 24.27% 19.09% (1.32%)
Return on assets 17.77% 14.07% 0.00%
Return on invested capital 21.38% 15.42% 0.00%

Growth

Metric RMD WST Medical Instruments & Supplies median
Revenue growth (TTM) 9.85% 12.38% 8.85%
EPS growth (last fiscal year) 9.67% 1.49% 8.65%
Revenue growth, 5-year CAGR 12.08% 7.44% 9.17%
Net income growth, 5-year CAGR 26.27% 7.36% 0.00%

Health

Metric RMD WST Medical Instruments & Supplies median
Debt to equity 0.06 0.07 0.10
Current ratio 3.10 2.82 2.48
Net debt to EBITDA (0.50) (0.78) 0.89

Dividend

Metric RMD WST Medical Instruments & Supplies median
Dividend yield 1.03% 0.23% 1.11%
Payout ratio 0.24 0.11 0.27

Size

Metric RMD WST Medical Instruments & Supplies median
Market cap 34.07b 26.96b 619.84m

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