Restoration Robotics (NYSE: RMD) and ResMed (NYSE:RMD) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Earnings & Valuation
This table compares Restoration Robotics and ResMed’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Restoration Robotics||$21.30 million||2.48||-$17.84 million||($2.50)||-0.72|
|ResMed||$2.34 billion||6.51||$315.58 million||$3.53||30.25|
ResMed has higher revenue and earnings than Restoration Robotics. Restoration Robotics is trading at a lower price-to-earnings ratio than ResMed, indicating that it is currently the more affordable of the two stocks.
ResMed pays an annual dividend of $1.48 per share and has a dividend yield of 1.4%. Restoration Robotics does not pay a dividend. ResMed pays out 41.9% of its earnings in the form of a dividend. ResMed has raised its dividend for 2 consecutive years.
This table compares Restoration Robotics and ResMed’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Restoration Robotics and ResMed, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Restoration Robotics presently has a consensus target price of $9.00, suggesting a potential upside of 397.24%. ResMed has a consensus target price of $68.80, suggesting a potential downside of 35.58%. Given Restoration Robotics’ stronger consensus rating and higher possible upside, research analysts plainly believe Restoration Robotics is more favorable than ResMed.
Institutional & Insider Ownership
28.1% of Restoration Robotics shares are owned by institutional investors. Comparatively, 62.7% of ResMed shares are owned by institutional investors. 37.8% of Restoration Robotics shares are owned by company insiders. Comparatively, 1.8% of ResMed shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
ResMed beats Restoration Robotics on 11 of the 15 factors compared between the two stocks.
About Restoration Robotics
Restoration Robotics, Inc., a medical device company, develops and commercializes image-guided robotic systems in the United States and internationally. The company offers ARTAS System, a physician-assisted robotic system that identifies and dissects hair follicular units directly from the scalp and creates recipient implant sites. Its system includes the ARTAS Hair Studio application, an interactive three-dimensional patient consultation tool that enables a physician to create a simulated hair transplant model for use in patient consultations. The company was founded in 2002 and is headquartered in San Jose, California.
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, portable oxygen concentrators, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides humidifiers, carry bags, and breathing circuits; and data communications and control products, such as EasyCare, ResLink, ResControl, ResControl II, TxControl, ResScan, and ResTraxx modules that facilitate the transfer of data and other information to and from the flow generators. It markets its products to sleep clinics, home healthcare dealers, patients, hospitals, physicians, and third-party payers through a network of distributors and direct sales force in approximately 120 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.
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