Financial Analysis: ResMed (NYSE:RMD) versus Sunny Optical Technology (Group) (OTCMKTS:SNPTF)

ResMed (NYSE:RMD) and Sunny Optical Technology (Group) (OTCMKTS:SNPTF) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Insider & Institutional Ownership

55.0% of ResMed shares are held by institutional investors. 0.7% of ResMed shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for ResMed and Sunny Optical Technology (Group), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ResMed	0	5	9	1	2.73
Sunny Optical Technology (Group)	0	0	0	0	0.00

ResMed currently has a consensus target price of $295.17, indicating a potential upside of 29.52%. Given ResMed’s stronger consensus rating and higher probable upside, analysts clearly believe ResMed is more favorable than Sunny Optical Technology (Group).

Profitability

This table compares ResMed and Sunny Optical Technology (Group)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ResMed	27.53%	25.20%	18.55%
Sunny Optical Technology (Group)	N/A	N/A	N/A

Earnings & Valuation

This table compares ResMed and Sunny Optical Technology (Group)”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ResMed	$5.15 billion	6.45	$1.40 billion	$10.11	22.54
Sunny Optical Technology (Group)	$5.33 billion	1.57	$375.45 million	N/A	N/A

ResMed has higher earnings, but lower revenue than Sunny Optical Technology (Group).

Risk and Volatility

ResMed has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Sunny Optical Technology (Group) has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Summary

ResMed beats Sunny Optical Technology (Group) on 12 of the 13 factors compared between the two stocks.

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.

About Sunny Optical Technology (Group)

Sunny Optical Technology (Group) Company Limited, an investment holding company, engages in designing, researching, developing, manufacturing, and selling optical and optical related products, and scientific instruments. The company's Optical Components segment offers glass spherical and aspherical lenses, handset lens sets, vehicle lens sets, security surveillance lens sets, and other lens sets. Its Optoelectronic Products segment comprise handset camera modules, three dimensional optoelectronic products, vehicle modules, and other optoelectronic modules. The company's Optical Instruments segment includes microscopes and intelligent inspection equipment for testing. Its optoelectronic-related products are used in handsets, digital cameras, vehicle imaging and sensing systems, security surveillance systems, virtual reality/augmented reality, and robots, which are combined with optical, electronic, algorithm, and mechanical technologies. In addition, the company engages in the research and development of infrared and semiconductor technologies; trading of optical instruments and optoelectronics products; property leasing activities; and development, service, and consultation of technology; provision of financing services; and import and export agency services. It operates primarily in the People's Republic of China, rest of Asia, Europe, North America, and internationally. The company was founded in 1984 and is headquartered in Yuyao, China.