ResMed Inc. vs Smith & Nephew plc, two Medical Devices stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
ResMed is a franchise in the economic sense, sleep-apnea devices plus the software that locks them in, earning a 34.9% operating margin; Smith & Nephew is a portfolio in the corporate sense, orthopedics, sports medicine, and wound care earning 12.9% while management keeps renovating. The market prices the renovation above the franchise, 41.6 times earnings against 19.3, a 22-turn inversion of the quality ranking. Both are effectively debt-free with free-cash yields near 5-6%; ResMed adds a 1.1% dividend. GLP-1 anxiety discounts the strong one, turnaround hope premiums the weak one. Between fear of the excellent and faith in the fixable, the market has chosen faith, at double the price.
Comparison updated 2026-07-10.
| Metric | RMD | SNN |
|---|---|---|
| Price | $200.28 | $30.02 |
| Market cap | $29.2B | $26.0B |
| Sector | Medical Devices | Medical Devices |
| Stage | Mature | Mature |
| Implied growth (priced in) | +4.3% | — |
| P/E | 19.3 | 41.6 |
| P/B | 4.50 | 4.92 |
| P/S | 5.27 | 4.22 |
| EV/EBITDA | 13.3 | 32.1 |
| Revenue growth | +10.3% | +4.3% |
| Gross margin | 62.3% | 68.0% |
| Operating margin | 34.9% | 12.9% |
| Net margin | 27.4% | 10.1% |
| Return on equity | 23.4% | 11.8% |
| Return on assets | 17.3% | 6.0% |
| Return on invested capital | 21.0% | 12.0% |
| FCF yield | 6.0% | 4.9% |
| Dividend yield | 1.1% | — |
| Debt / equity | 0.10 | 0.00 |
| Current ratio | 3.01 | 2.57 |
| Altman Z (solvency) | 8.30 | 4.86 |
| Piotroski F (quality) | 7 / 9 | 7 / 9 |
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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.