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 $31.9B against $26.3B — 1.2× the size. ResMed Inc. trades at the lower P/E: 21.3× against 47.1×. 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 (1.06% vs 0.14%). 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 21.25 47.07 34.17
P/S 5.72 7.88 2.83
P/B 4.91 8.77 2.82
Price to free cash flow 19.86 60.56 25.69
EV/EBITDA 14.68 30.16 16.08
EV/Sales 5.53 7.81 3.06
Earnings yield 4.71% 2.12% (1.84%)
Free cash flow yield 5.03% 1.65% 0.17%

Profitability

Metric RMD WST Medical Instruments & Supplies median
Gross margin 61.06% 36.79% 54.62%
Operating margin 33.37% 20.45% 1.64%
Net margin 26.94% 16.98% 0.00%
Free cash flow margin 28.81% 13.13% 1.61%
Return on equity 24.27% 19.09% 0.00%
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% 9.20%
EPS growth (last fiscal year) 9.67% 1.49% —
Revenue growth, 5-year CAGR 12.08% 7.44% 9.48%
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 0.08
Current ratio 3.10 2.82 2.49
Net debt to EBITDA (0.50) (0.78) 0.83

Dividend

Metric RMD WST Medical Instruments & Supplies median
Dividend yield 1.06% 0.14% 0.99%
Payout ratio 0.29 0.11 0.00

Size

Metric RMD WST Medical Instruments & Supplies median
Market cap 31.91b 26.29b 938.39m

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