ResMed (NYSE:RMD) versus Hypertension Diagnostics (OTCMKTS:HDII) Critical Contrast

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

Profitability

This table compares Hypertension Diagnostics and ResMed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hypertension Diagnostics	N/A	N/A	N/A
ResMed	25.34%	26.17%	18.60%

Insider & Institutional Ownership

55.0% of ResMed shares are owned by institutional investors. 40.0% of Hypertension Diagnostics shares are owned by insiders. Comparatively, 0.7% of ResMed shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Hypertension Diagnostics has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, ResMed has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Hypertension Diagnostics and ResMed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hypertension Diagnostics	0	0	0	0	0.00
ResMed	1	5	7	2	2.67

ResMed has a consensus target price of $251.00, indicating a potential upside of 17.90%. Given ResMed’s stronger consensus rating and higher probable upside, analysts clearly believe ResMed is more favorable than Hypertension Diagnostics.

Earnings and Valuation

This table compares Hypertension Diagnostics and ResMed”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hypertension Diagnostics	N/A	N/A	N/A	N/A	N/A
ResMed	$4.93 billion	6.35	$1.02 billion	$8.47	25.13

ResMed has higher revenue and earnings than Hypertension Diagnostics.

Summary

ResMed beats Hypertension Diagnostics on 9 of the 11 factors compared between the two stocks.

About Hypertension Diagnostics

Hypertension Diagnostics, Inc. designs, develops, manufactures, and markets proprietary noninvasive medical devices that detect subtle changes in the elasticity of arteries in the United States and internationally. It offers CVProfilor, which allows a physician to non-invasively assess the elasticity of small and large arteries, of which small artery elasticity is the earliest and sensitive marker of cardiovascular disease. The company offers CVProfilor DO-2020, which provides a patient's arterial elasticity indices used in the assessment for underlying vascular disease; CVProfilor MD-3000 that offers a sensitive and specific guide to the presence of blood vessel disease; and HD/PulseWave CR-2000 research cardiovascular profiling system, which provides researchers and scientists with a non-invasive means to assess arterial elasticity in support of human research in various areas. Its products collect 30 seconds of blood pressure waveform data, perform an analysis of the digitized blood pressure waveforms, and generate a CVProfile report that contains information on blood pressure, heart rate, pulse pressure, body surface area, body mass index, and C1-large and C2-small artery elasticity indices. The company sells its products to primary care physicians, cardiologists, health care professionals, trained medical personnel, research investigators at academic medical research centers, government institutes, cardiovascular specialists, and pharmaceutical firms. It markets its products through a representative organization in the United States. Hypertension Diagnostics, Inc. was founded in 1988 and is based in Richmond Hill, Canada.

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.