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The strategic rivalry between ResMed Inc. and AptarGroup, Inc. defines the trajectory of the healthcare instruments and supplies sector. ResMed operates as a technology-driven medical device and cloud software provider focused on respiratory care. AptarGroup delivers diversified dispensing and material science solutions across pharma and consumer markets. This analysis aims to identify which company’s operational model offers superior risk-adjusted returns for a well-diversified portfolio in a competitive healthcare landscape.
Table of contents
Companies Overview
ResMed Inc. and AptarGroup, Inc. each command significant roles in the medical instruments and supplies market, reflecting diverse strategic pathways.
ResMed Inc.: Leader in Respiratory Care Technology
ResMed dominates the healthcare sector with its core business in medical devices and cloud-based software for respiratory disorders. It generates revenue by selling ventilation devices, masks, and remote monitoring software. In 2026, ResMed’s strategic focus emphasizes expanding its digital health solutions to improve patient compliance and outcomes globally.
AptarGroup, Inc.: Specialist in Dispensing and Material Science
AptarGroup operates primarily in the healthcare sector by providing dispensing and sealing solutions across pharma, beauty, and food markets. Its revenue engine relies on pumps, valves, and closures for pharmaceutical and consumer products. In 2026, AptarGroup prioritizes sustainability and innovation through partnerships to develop recycled materials and digital therapies platforms.
Strategic Collision: Similarities & Divergences
Both companies serve healthcare markets but diverge sharply in business philosophy: ResMed leverages a closed ecosystem of devices and software, while AptarGroup thrives on an open, multi-industry product portfolio. Their primary battleground lies in respiratory care innovation and patient engagement technology. Investors face contrasting profiles: ResMed offers a technology-driven healthcare play, whereas AptarGroup presents a material science and diversified dispensing solutions exposure.
Income Statement Comparison
The following data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | ResMed Inc. (RMD) | AptarGroup, Inc. (ATR) |
|---|---|---|
| Revenue | 5.15B | 3.78B |
| Cost of Revenue | 2.09B | 2.66B |
| Operating Expenses | 1.37B | 606M |
| Gross Profit | 3.05B | 1.12B |
| EBITDA | 1.91B | 831M |
| EBIT | 1.68B | 544M |
| Interest Expense | 13M | 53M |
| Net Income | 1.40B | 393M |
| EPS | 9.55 | 5.97 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company drives profitability and growth with greater efficiency and financial discipline.
ResMed Inc. Analysis
ResMed’s revenue grows strongly, reaching $5.15B in 2025, up nearly 61% since 2021. Net income surges 195% to $1.4B, reflecting robust margin expansion. Gross margin stands at a healthy 59.4%, and net margin hits 27.2%, signaling operational excellence. The company accelerates earnings per share by 37% year-over-year, demonstrating strong momentum.
AptarGroup, Inc. Analysis
AptarGroup’s revenue climbs modestly to $3.78B in 2025, a 17% rise since 2021. Net income climbs 61% to $393M but shows slower growth compared to ResMed. Gross margin holds at 29.6%, with net margin at 10.4%, indicating a leaner profitability profile. Earnings per share increase 6.5% in the past year, reflecting steady but limited momentum.
Verdict: High Margin Mastery vs. Moderate Growth Resilience
ResMed dominates with superior revenue and net income growth, paired with a best-in-class 27% net margin. AptarGroup delivers consistent gains but at half the margin scale and slower profit acceleration. For investors, ResMed’s profile offers greater efficiency and earnings power, appealing more to those prioritizing strong profitability and growth.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | ResMed Inc. (RMD) | AptarGroup, Inc. (ATR) |
|---|---|---|
| ROE | 23.5% | 15.2% |
| ROIC | 19.6% | 10.7% |
| P/E | 27.0 | 20.4 |
| P/B | 6.34 | — |
| Current Ratio | 3.44 | 0 |
| Quick Ratio | 2.53 | 0 |
| D/E | 0.14 | 0 |
| Debt-to-Assets | 10.4% | 0 |
| Interest Coverage | 134.0 | -9.5 |
| Asset Turnover | 0.63 | 0 |
| Fixed Asset Turnover | 7.16 | 0 |
| Payout Ratio | 22.2% | 30.6% |
| Dividend Yield | 0.82% | 1.50% |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as the company’s DNA, exposing hidden risks and operational excellence essential for informed investment decisions.
ResMed Inc.
ResMed delivers strong profitability with a 23.5% ROE and a healthy 27.2% net margin. The stock trades expensive at a P/E of 27.0 and a high P/B of 6.3, signaling stretched valuation. Shareholders receive a modest 0.82% dividend yield, while the company reinvests heavily in R&D, fueling growth and operational efficiency.
AptarGroup, Inc.
AptarGroup shows a lower net margin at 10.4% and lacks reported ROE and ROIC figures, reflecting operational opacity. Its valuation appears more reasonable with a P/E of 20.4 and a neutral dividend yield of 1.5%. The absence of key profitability metrics suggests higher risk, though the company maintains a solid interest coverage ratio of 10.3.
Premium Valuation vs. Operational Transparency
ResMed offers superior profitability and reinvestment discipline but at a premium valuation with some liquidity concerns. AptarGroup presents a more affordable stock with less transparent profitability metrics, raising risk. Investors seeking growth with proven efficiency may prefer ResMed, while those prioritizing valuation might consider AptarGroup’s profile.
Which one offers the Superior Shareholder Reward?
I compare ResMed Inc. (RMD) and AptarGroup, Inc. (ATR) on their dividend yields, payout ratios, and buyback intensity. RMD yields ~0.82% with a 22% payout, supported by strong free cash flow (FCF) coverage near 95%. ATR offers a higher yield of 1.5% but pays out ~31% of earnings. RMD’s buybacks are modest but consistent, enhancing shareholder value sustainably. ATR’s dividend is well-covered but its free cash flow data is limited, raising sustainability concerns. I favor RMD’s balanced yield and buybacks, underpinned by robust margins and cash flow, for superior long-term total return in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of ResMed Inc. and AptarGroup, Inc. across key financial metrics:
ResMed Inc. shows a balanced profile with very favorable ROE and ROA scores (5 each) and moderate debt control (score 3). AptarGroup matches ResMed’s ROE but lags slightly on ROA and suffers from a weak debt-to-equity score (1), signaling higher leverage risk. Both firms share unfavorable valuation metrics, but ResMed’s overall score (4) edges out AptarGroup’s (3), reflecting more consistent operational strength.
Bankruptcy Risk: Solvency Showdown
ResMed’s Altman Z-Score of 13.6 versus AptarGroup’s 3.2 signals a stark difference in financial resilience:
ResMed sits firmly in the safe zone, indicating negligible bankruptcy risk. AptarGroup, while also in the safe zone, is much closer to the grey area threshold, suggesting higher vulnerability under economic stress.
Financial Health: Quality of Operations
ResMed’s Piotroski F-Score of 7 versus AptarGroup’s 6 highlights a modest edge in internal financial health:
Both companies demonstrate strong financial quality, but ResMed’s higher score reflects better profitability and efficiency metrics. AptarGroup’s slightly lower score warrants caution on operational consistency compared to ResMed.
How are the two companies positioned?
This section dissects the operational DNA of ResMed and AptarGroup by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats to identify which model delivers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
The following visual comparison dissects how ResMed Inc. and AptarGroup, Inc. diversify their income streams and where their primary sector bets lie:
ResMed Inc. heavily anchors its revenue in Sleep And Respiratory at $4.1B, with a smaller $584M from Software As Service, showing moderate diversification. AptarGroup, Inc. offers a more balanced mix, with Beauty And Home at $1.46B, Pharma at $1.37B, and Food + Beverage at $524M. ResMed’s concentration signals ecosystem lock-in in healthcare devices, while AptarGroup’s spread reduces sector-specific risk and supports resilience across consumer and pharma markets.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of ResMed Inc. and AptarGroup, Inc.:
ResMed Inc. Strengths
- Strong profitability with 27.22% net margin
- High ROE at 23.47% and ROIC of 19.56%
- Low debt-to-assets at 10.42% and strong interest coverage (133.05)
- Diverse product segments including Sleep and Respiratory plus SaaS
- Significant global presence with growing international revenue
- Favorable capital efficiency with fixed asset turnover of 7.16
AptarGroup, Inc. Strengths
- Positive net margin at 10.4%
- Favorable WACC at 5.75% and no debt leverage
- Diversified revenues across Beauty, Pharma, and Food & Beverage segments
- Solid global footprint including strong US and European markets
- Moderate dividend yield of 1.5%
- Stable interest coverage at 10.32
ResMed Inc. Weaknesses
- Unfavorable valuation multiples with PE at 27.02 and PB at 6.34
- Overly high current ratio at 3.44 may indicate inefficient asset use
- Low dividend yield of 0.82% limits income appeal
- Neutral asset turnover at 0.63 suggests room to improve asset utilization
AptarGroup, Inc. Weaknesses
- Zero ROE and ROIC indicate lack of profitability efficiency
- Unfavorable liquidity ratios with zero current and quick ratios
- Unfavorable asset and fixed asset turnover at 0
- Neutral PE valuation and zero PB may reflect market uncertainty
ResMed excels in profitability and capital structure but faces valuation and liquidity concerns. AptarGroup shows diversification and debt prudence but struggles with profitability and asset efficiency. These contrasts highlight differing strategic focuses and operational challenges.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the essential shield preserving long-term profits from competitive erosion. Here’s how ResMed Inc. and AptarGroup, Inc. stack up:
ResMed Inc.: Intangible Assets and Network Effects Moat
ResMed’s leading edge lies in its proprietary medical devices and cloud software, reflected in a soaring 32.6% EBIT margin and 11.8% ROIC premium over WACC. Its integrated SaaS ecosystem deepens patient engagement, fortifying future growth in 2026.
AptarGroup, Inc.: Cost Advantage and Material Science Moat
AptarGroup leverages advanced dispensing technology with a broad industrial footprint. Yet, its 14.4% EBIT margin and negative ROIC trend reveal margin pressure. Innovation in recycled materials offers upside but faces stiff competition ahead.
Profitability Dominance vs. Innovation Challenge
ResMed commands a wider, sustainable moat with growing ROIC and robust margins. AptarGroup’s shrinking economic returns signal vulnerability. ResMed is better positioned to defend and expand its healthcare market share in 2026.
Which stock offers better returns?
The past year reveals contrasting dynamics: ResMed Inc. surged over 40%, accelerating gains, while AptarGroup, Inc. faced a near 5% decline despite recent recovery signs.
Trend Comparison
ResMed Inc. posted a bullish 42.93% gain over 12 months, showing price acceleration and high volatility with a 24.67 std deviation, reaching a peak at 293.73 and a low near 179.
AptarGroup, Inc. recorded a bearish trend with a -4.74% price drop over the same period, also accelerating but with lower volatility (13.76 std deviation), hitting highs near 176 and lows at 116.
ResMed’s strong upward momentum outperforms AptarGroup’s declining trend, delivering superior market returns over the analyzed year.
Target Prices
Analysts set a mixed but cautiously optimistic target consensus for these medical instruments companies.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| ResMed Inc. | 265 | 345 | 295.88 |
| AptarGroup, Inc. | 133 | 220 | 166 |
ResMed’s consensus target of 296 suggests modest upside from its 272 current price, reflecting confidence in its SaaS and device integration. AptarGroup’s 166 target implies a more significant potential gain from 134, indicating growing market optimism amid its diversified segment exposure.
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How do institutions grade them?
The following tables present recent institutional grades for ResMed Inc. and AptarGroup, Inc.:
ResMed Inc. Grades
This table shows the latest grades from established grading firms for ResMed Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2026-02-02 |
| Wells Fargo | Maintain | Equal Weight | 2026-01-30 |
| Stifel | Maintain | Hold | 2026-01-30 |
| Piper Sandler | Maintain | Neutral | 2026-01-30 |
| RBC Capital | Maintain | Outperform | 2026-01-30 |
| Stifel | Maintain | Hold | 2025-12-18 |
| Baird | Downgrade | Neutral | 2025-12-16 |
| Baird | Maintain | Outperform | 2025-11-03 |
| RBC Capital | Maintain | Outperform | 2025-10-31 |
| Keybanc | Maintain | Overweight | 2025-10-31 |
AptarGroup, Inc. Grades
This table summarizes recent grades from credible institutions for AptarGroup, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Downgrade | Equal Weight | 2026-01-06 |
| Baird | Maintain | Outperform | 2025-11-03 |
| Wells Fargo | Maintain | Overweight | 2025-11-03 |
| Wells Fargo | Maintain | Overweight | 2025-09-10 |
| Wells Fargo | Maintain | Overweight | 2025-08-04 |
| Raymond James | Maintain | Outperform | 2025-08-04 |
| Wells Fargo | Maintain | Overweight | 2025-07-18 |
| Raymond James | Maintain | Outperform | 2025-07-15 |
| Wells Fargo | Maintain | Overweight | 2025-05-06 |
| Raymond James | Maintain | Outperform | 2025-04-22 |
Which company has the best grades?
ResMed Inc. holds a broader mix of grades, including multiple “Buy” and “Outperform” ratings from major firms. AptarGroup, Inc. mainly receives “Overweight” and “Outperform” grades but experienced a recent downgrade to “Equal Weight.” Investors might view ResMed’s slightly stronger consensus as a signal of more robust institutional confidence.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
ResMed Inc.
- Operates in specialized medical devices with strong software integration, facing intense innovation competition.
AptarGroup, Inc.
- Serves diverse markets including pharma and consumer goods, battling commoditization and aggressive pricing pressures.
2. Capital Structure & Debt
ResMed Inc.
- Maintains low debt-to-equity of 0.14, indicating conservative leverage and strong financial stability.
AptarGroup, Inc.
- Shows zero reported debt, which reduces financial risk but may limit capital flexibility for growth.
3. Stock Volatility
ResMed Inc.
- Beta of 0.877 suggests moderate market sensitivity, aligning with healthcare sector norms.
AptarGroup, Inc.
- Beta of 0.481 implies lower volatility, indicating defensive stock characteristics.
4. Regulatory & Legal
ResMed Inc.
- Subject to stringent healthcare device regulations globally, increasing compliance costs and risk of litigation.
AptarGroup, Inc.
- Faces regulatory scrutiny in pharma and food packaging sectors, with potential exposure to evolving safety standards.
5. Supply Chain & Operations
ResMed Inc.
- Relies on global manufacturing and distribution networks; vulnerable to supply disruptions and component shortages.
AptarGroup, Inc.
- Complex supply chain across multiple industries, exposed to raw material price volatility and logistic challenges.
6. ESG & Climate Transition
ResMed Inc.
- Increasing focus on sustainable healthcare solutions; must innovate to meet evolving ESG norms.
AptarGroup, Inc.
- Invests in recycled materials and digital therapies, positioning well but faces execution risks.
7. Geopolitical Exposure
ResMed Inc.
- Operates in 140 countries, exposed to trade tensions and regulatory divergence.
AptarGroup, Inc.
- Global footprint in sensitive markets like pharma and food, vulnerable to geopolitical instability.
Which company shows a better risk-adjusted profile?
ResMed’s most impactful risk lies in regulatory and market competition pressures due to its high-value healthcare technology focus. AptarGroup’s key risk is supply chain complexity amid raw material volatility. ResMed demonstrates a stronger risk-adjusted profile supported by low leverage, solid Altman Z-Score (13.6), and robust profitability. AptarGroup’s weaker ROIC and debt concerns temper its defensive volatility advantage. The stark difference in financial stability and market positioning justifies my preference for ResMed amid 2026 uncertainties.
Final Verdict: Which stock to choose?
ResMed’s superpower lies in its robust value creation, driven by a durable economic moat and steadily rising ROIC well above its cost of capital. It commands premium valuations but delivers consistent profitability and strong cash flow generation. A point of vigilance is its relatively high price-to-book ratio, which may challenge value-conscious investors. It suits an Aggressive Growth portfolio seeking quality at scale.
AptarGroup leverages a strategic moat rooted in niche packaging solutions with stable, recurring revenues. While it lacks ResMed’s financial dynamism, it offers a safer profile with moderate valuation multiples and solid income quality. Its declining ROIC trend signals caution, but it fits a GARP (Growth at a Reasonable Price) portfolio focused on steady income and capital preservation.
If you prioritize sustained profitability and market leadership, ResMed outshines AptarGroup due to its superior capital efficiency and growth trajectory. However, if you seek stability with less valuation premium, AptarGroup offers better downside protection despite its waning moat. Each case reflects distinct investor priorities amid prevailing market cycles.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of ResMed Inc. and AptarGroup, Inc. to enhance your investment decisions:
