Sysmex (OTCMKTS:SSMXY – Get Free Report) and ResMed (NYSE:RMD – Get Free Report) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
Risk and Volatility
Sysmex has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, ResMed has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
Profitability
This table compares Sysmex and ResMed’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sysmex | 7.62% | 8.01% | 5.61% |
| ResMed | 26.94% | 25.58% | 18.89% |
Institutional and Insider Ownership
55.0% of ResMed shares are owned by institutional investors. 0.6% of ResMed shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations for Sysmex and ResMed, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sysmex | 0 | 2 | 0 | 0 | 2.00 |
| ResMed | 0 | 9 | 7 | 0 | 2.44 |
ResMed has a consensus price target of $243.23, suggesting a potential downside of 3.78%. Given ResMed’s stronger consensus rating and higher possible upside, analysts plainly believe ResMed is more favorable than Sysmex.
Valuation and Earnings
This table compares Sysmex and ResMed”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sysmex | $3.32 billion | 2.26 | $234.01 million | $0.42 | 29.38 |
| ResMed | $5.65 billion | 6.29 | $1.52 billion | $10.43 | 24.24 |
ResMed has higher revenue and earnings than Sysmex. ResMed is trading at a lower price-to-earnings ratio than Sysmex, indicating that it is currently the more affordable of the two stocks.
Dividends
Sysmex pays an annual dividend of $0.14 per share and has a dividend yield of 1.1%. ResMed pays an annual dividend of $2.64 per share and has a dividend yield of 1.0%. Sysmex pays out 33.3% of its earnings in the form of a dividend. ResMed pays out 25.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ResMed has increased its dividend for 13 consecutive years.
Summary
ResMed beats Sysmex on 14 of the 17 factors compared between the two stocks.
About Sysmex
Sysmex Corporation engages in the development, manufacture, and sale of diagnostic instruments, reagents, and related software in Japan. It offers three-part and five-part white blood cell differentiation instruments for use in hematology; and transport systems for high-volume testing in labs. The company also provides automated urine particle analyzers; automated blood coagulation analyzers; automated immunochemistry systems, which perform assays on minute sample quantities, as well as reagents to test for infectious disease and tumor markers; and flow cytometers to perform analysis in diagnosing leukemia, malignant lymphoma, and HIV/AIDS. In addition, it offers cancer lymph node metastasis testing systems to detect information to help in diagnosing lymph node metastasis; and lab assay services. Further, the company is involved in the development and sale of software for diagnostic information systems; provision of facility management, office, welfare, and genetic analysis services; development, operation, and maintenance of IT solutions, platforms, and applications related to digital medicine; marketing, development, design, manufacture, sale, and after-sales service related to medical robots; and distribution and after sales support of medical devices and reagents for biotechnology, medical technology, and molecular cell analysis. Additionally, it researches, develops, manufactures, and sells regenerative medicine products; develops, manufactures, and sells biodevices; develops, maintains, and sells computer software; and offers blood DNA testing service. The company serves national and other public hospitals, private hospitals, universities, research institutes, other medical institutions, etc. It also exports its products to approximately 190 countries. The company was formerly known as TOA Medical Electronics Co., Ltd. and changed its name to Sysmex Corporation in October 1998. Sysmex Corporation was founded in 1968 and is headquartered in Kobe, Japan.
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.
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