Quipt Home Medical (NASDAQ:QIPT) vs. ResMed (NYSE:RMD) Head to Head Contrast

Quipt Home Medical (NASDAQ:QIPT) and ResMed (NYSE:RMD) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Quipt Home Medical and ResMed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quipt Home Medical	1	1	1	0	2.00
ResMed	0	4	10	2	2.88

Quipt Home Medical currently has a consensus target price of $3.15, indicating a potential upside of 34.04%. ResMed has a consensus target price of $297.45, indicating a potential upside of 17.77%. Given Quipt Home Medical’s higher possible upside, equities analysts plainly believe Quipt Home Medical is more favorable than ResMed.

Risk and Volatility

Quipt Home Medical has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, ResMed has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quipt Home Medical	-4.30%	-9.78%	-4.23%
ResMed	27.22%	25.62%	18.69%

Insider and Institutional Ownership

42.9% of Quipt Home Medical shares are held by institutional investors. Comparatively, 55.0% of ResMed shares are held by institutional investors. 13.4% of Quipt Home Medical shares are held by insiders. Comparatively, 0.7% of ResMed shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Quipt Home Medical and ResMed”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quipt Home Medical	$245.91 million	0.42	-$6.76 million	($0.24)	-9.79
ResMed	$5.26 billion	7.01	$1.40 billion	$9.77	25.85

ResMed has higher revenue and earnings than Quipt Home Medical. Quipt Home Medical is trading at a lower price-to-earnings ratio than ResMed, indicating that it is currently the more affordable of the two stocks.

Summary

ResMed beats Quipt Home Medical on 13 of the 15 factors compared between the two stocks.

About Quipt Home Medical

Quipt Home Medical Corp., through its subsidiaries, engages in the provision of durable and home medical equipment and supplies in the United States. The company offers nebulizers, oxygen concentrators, and CPAP and BiPAP units; traditional and non-traditional durable medical respiratory equipment and services; non-invasive ventilation equipment, supplies, and services; and engages in the rental of medical equipment. It offers management of various chronic disease states focusing on patients with heart and pulmonary disease, sleep apnea, reduced mobility, and other chronic health conditions. The company was formerly known as Protech Home Medical Corp. and changed its name to Quipt Home Medical Corp. in May 2021. Quipt Home Medical Corp. is headquartered in Wilder, Kentucky.

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.