Head to Head Comparison: Spectral Medical (OTCMKTS:EDTXF) & ResMed (OTCMKTS:RMD)

Spectral Medical (OTCMKTS:EDTXF) and ResMed (NYSE:RMD) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Valuation and Earnings

This table compares Spectral Medical and ResMed’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spectral Medical $2.96 million 27.82 -$1.92 million N/A N/A
ResMed $2.61 billion 8.02 $404.59 million $3.64 39.96

ResMed has higher revenue and earnings than Spectral Medical.

Volatility & Risk

Spectral Medical has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, ResMed has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Profitability

This table compares Spectral Medical and ResMed’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spectral Medical -57.58% -41.09% -34.86%
ResMed 15.52% 27.05% 13.56%

Dividends

ResMed pays an annual dividend of $1.56 per share and has a dividend yield of 1.1%. Spectral Medical does not pay a dividend. ResMed pays out 42.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Spectral Medical and ResMed, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spectral Medical 0 0 0 0 N/A
ResMed 0 2 4 0 2.67

ResMed has a consensus target price of $118.33, indicating a potential downside of 18.64%. Given ResMed’s higher possible upside, analysts plainly believe ResMed is more favorable than Spectral Medical.

Insider & Institutional Ownership

66.4% of ResMed shares are owned by institutional investors. 1.2% of ResMed shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

ResMed beats Spectral Medical on 10 of the 13 factors compared between the two stocks.

Spectral Medical Company Profile

Spectral Medical Inc. focuses on the development and commercialization of treatment for septic shock in North America. The company markets Endotoxin Activity Assay, a rapid diagnostic test for the detection of components of gram negative bacterial cell wall in Europe and Canada; and Toraymyxin, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream in Europe, Canada, and Japan. It also develops, produces, and markets recombinant proteins, antibodies, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies; and develops continuous renal replacement therapy, an open platform for other hemoperfusion cartridges. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was founded in 1991 and is headquartered in Toronto, Canada.

ResMed Company Profile

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; data communications and control products, such as AirView Diagnostics, EasyCare, ResLink, ResControl, ResControl II, TxControl, ResScan, and ResTraxx modules; U-Sleep, which enables automated patient coaching through a text, email, or interactive voice phone call; and myAir, a patient engagement application that provides sleep data and a daily score based on their previous night's data, as well as offers business management software and services to medical equipment and home health providers. 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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