ResMed (NYSE:RMD – Get Free Report) and Rockwell Medical (NASDAQ:RMTI – Get Free Report) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Profitability
This table compares ResMed and Rockwell Medical’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ResMed | 27.35% | 25.45% | 18.68% |
| Rockwell Medical | -7.30% | -16.77% | -9.88% |
Institutional and Insider Ownership
55.0% of ResMed shares are held by institutional investors. Comparatively, 23.3% of Rockwell Medical shares are held by institutional investors. 0.7% of ResMed shares are held by company insiders. Comparatively, 3.6% of Rockwell Medical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ResMed | $5.15 billion | 7.31 | $1.40 billion | $9.77 | 26.38 |
| Rockwell Medical | $101.49 million | 0.37 | -$480,000.00 | ($0.16) | -5.98 |
ResMed has higher revenue and earnings than Rockwell Medical. Rockwell Medical is trading at a lower price-to-earnings ratio than ResMed, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
ResMed has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Rockwell Medical has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for ResMed and Rockwell Medical, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ResMed | 0 | 7 | 8 | 1 | 2.63 |
| Rockwell Medical | 1 | 0 | 1 | 0 | 2.00 |
ResMed currently has a consensus target price of $296.09, suggesting a potential upside of 14.89%. Rockwell Medical has a consensus target price of $2.50, suggesting a potential upside of 161.15%. Given Rockwell Medical’s higher probable upside, analysts clearly believe Rockwell Medical is more favorable than ResMed.
Summary
ResMed beats Rockwell Medical on 12 of the 15 factors compared between the two stocks.
About ResMed
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients’ device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME) to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies; and MEDIFOX DAN’s software solutions. The company markets its products to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.
About Rockwell Medical
Rockwell Medical, Inc., together with its subsidiaries, operates as a healthcare company that engages in the development, manufacture, commercialization, and distribution of various hemodialysis products for dialysis providers worldwide. The company offers Triferic Dialysate and Triferic AVNU which are indicated to maintain hemoglobin in adult undergoing hemodialysis. It also manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, and RenalPure and SteriLyte powder bicarbonate concentrate; and ancillary products, including testing supplies, 5% acetic acid cleaning solution, 5% and 2% citric acid descaler, filtration salts, and other items used by hemodialysis providers. The company's hemodialysis concentrate products are used to sustain patient's life by removing toxins and balancing electrolytes in a dialysis patient's bloodstream. The company serves to hemodialysis clinics. Rockwell Medical, Inc. was incorporated in 1996 and is headquartered in Wixom, Michigan.
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