GenMark Diagnostics (NASDAQ: GNMK) and ResMed (NYSE:RMD) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.
This is a summary of current ratings and price targets for GenMark Diagnostics and ResMed, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ResMed pays an annual dividend of $1.40 per share and has a dividend yield of 1.4%. GenMark Diagnostics does not pay a dividend. ResMed pays out 48.8% of its earnings in the form of a dividend. ResMed has raised its dividend for 2 consecutive years.
Institutional & Insider Ownership
62.4% of ResMed shares are owned by institutional investors. 7.5% of GenMark Diagnostics shares are owned by company insiders. Comparatively, 1.8% of ResMed shares are owned 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.
This table compares GenMark Diagnostics and ResMed’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares GenMark Diagnostics 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|
|GenMark Diagnostics||$52.52 million||5.76||-$61.85 million||($1.21)||-4.53|
|ResMed||$2.07 billion||6.84||$342.28 million||$2.87||34.46|
ResMed has higher revenue and earnings than GenMark Diagnostics. GenMark Diagnostics is trading at a lower price-to-earnings ratio than ResMed, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
GenMark Diagnostics has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, ResMed has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.
ResMed beats GenMark Diagnostics on 10 of the 16 factors compared between the two stocks.
GenMark Diagnostics Company Profile
GenMark Diagnostics, Inc. is a molecular diagnostics company. The Company is focused on developing and commercializing multiplex molecular tests that aid in the diagnosis of complex medical conditions. It develops and commercializes multiplex molecular tests based on its eSensor electrochemical detection technology. It offers four Food and Drug Administration (FDA)-cleared diagnostic tests which run on its XT-8 instrument; its Respiratory Viral Panel; its Cystic Fibrosis Genotyping Test; its Warfarin Sensitivity Test, and its Thrombophilia Risk Test. It also offers a Hepatitis C (HCV) genotyping test and associated custom manufactured reagents, as well as a 2C19 Genotyping Test, versions of which are available for use with its XT-8 instrument for research use only (RUO). Its XT-8 and ePlex test cartridges utilize the combination of distinct electrodes and multiple signal probes to detect dozens of target biomarkers from a single sample, thereby enabling highly multiplexed testing.
ResMed Company Profile
ResMed Inc. is a holding company. The Company is engaged in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (SDB), chronic obstructive pulmonary disease (COPD), neuromuscular disease and other diseases. SDB includes obstructive sleep apnea (OSA) and other respiratory disorders that occur during sleep. Its cloud-based software digital health applications, along with its devices, are designed to provide connected care to improve patient outcomes. The Company’s portfolio of products includes devices, diagnostic products, mask systems, headgear and other accessories, dental devices, portable oxygen concentrators (POCs) and cloud-based software informatics solutions. The Company produces Continuous Positive Airway Pressure (CPAP), Variable Positive Airway Pressure (VPAP) and AutoSet systems for the titration and treatment of SDB.
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