Comparing ResMed (NYSE:RMD) and Revolutions Medical (OTCMKTS:RMCP)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ResMed	25.34%	26.17%	18.60%
Revolutions Medical	N/A	N/A	N/A

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ResMed	$4.69 billion	7.48	$1.02 billion	$8.47	28.17
Revolutions Medical	N/A	N/A	N/A	N/A	N/A

ResMed has higher revenue and earnings than Revolutions Medical.

Analyst Recommendations

This is a summary of recent ratings and price targets for ResMed and Revolutions Medical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ResMed	1	6	6	2	2.60
Revolutions Medical	0	0	0	0	0.00

ResMed presently has a consensus price target of $244.73, indicating a potential upside of 2.58%. Given ResMed’s stronger consensus rating and higher possible upside, research analysts clearly believe ResMed is more favorable than Revolutions Medical.

Institutional & Insider Ownership

55.0% of ResMed shares are owned by institutional investors. 0.7% of ResMed shares are owned by insiders. Comparatively, 10.5% of Revolutions Medical shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

ResMed has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Revolutions Medical has a beta of -0.43, indicating that its stock price is 143% less volatile than the S&P 500.

Summary

ResMed beats Revolutions Medical on 10 of the 11 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 Revolutions Medical

Revolutions Medical Corporation, a development stage company, is engaged in the design, development, and commercialization of auto retractable vacuum safety syringes in the United States and internationally. The company develops RevVac auto retractable vacuum safety syringe, which is designed to reduce accidental needle stick injuries and lower the spread of blood borne diseases. It is also developing a suite of magnetic resonance imaging software tools consisting of RevColor, Rev3D, RevDisplay, and RevScan that are designed to enhance general diagnostic confidence through education and research use. The company sells its products to acute care hospitals, alternate care facilities, doctors' offices, clinics, emergency centers, surgical centers, convalescent hospitals, veterans administration facilities, military organizations, public health facilities, and prisons through distributors. Revolutions Medical Corporation was founded in 1996 and is headquartered in Charleston, South Carolina.