EDWARDS LIFESCIENCES CORPORATION vs ResMed Inc., two Medical Devices stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Edwards at 48.3 times earnings is priced for structural-heart growth, transcatheter valves expanding into new patient pools for years; ResMed at 19.3 times is priced as a mature sleep franchise with a GLP-1 question mark it has spent two years answering. The economics argue the discount is misaddressed: ResMed earns the higher operating margin, 34.9% against 29%, the better returns, 23.4% on equity against 10.6%, and nearly triple the free-cash yield, 6% against 2.1%, with a dividend besides. Edwards' 78% gross margin is the sector's finest raw material, spent heavily on trials and expansion. Twenty-nine turns of premium for the younger growth curve; the older one currently pays all the cash.
Comparison updated 2026-07-10.
| Metric | EW | RMD |
|---|---|---|
| Price | $90.82 | $200.28 |
| Market cap | $52.7B | $29.2B |
| Sector | Medical Devices | Medical Devices |
| Stage | Growth | Mature |
| Implied growth (priced in) | — | +4.3% |
| P/E | 48.3 | 19.3 |
| P/B | 5.11 | 4.50 |
| P/S | 8.37 | 5.27 |
| EV/EBITDA | 36.7 | 13.3 |
| Revenue growth | +14.1% | +10.3% |
| Gross margin | 78.0% | 62.3% |
| Operating margin | 29.0% | 34.9% |
| Net margin | 17.4% | 27.4% |
| Return on equity | 10.6% | 23.4% |
| Return on assets | 8.2% | 17.3% |
| Return on invested capital | 10.2% | 21.0% |
| FCF yield | 2.1% | 6.0% |
| Dividend yield | — | 1.1% |
| Debt / equity | 0.06 | 0.10 |
| Current ratio | 4.42 | 3.01 |
| Altman Z (solvency) | 8.56 | 8.30 |
| Piotroski F (quality) | 5 / 9 | 7 / 9 |
Each week boothcheck ranks the stocks whose prices are betting on the most. Read the most stretched bets archive →
boothcheck is also on Android. Get the app on Google Play →
The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.