RMD share price in focus
Founded in 1989 by Peter Farrell in Australia, ResMed is now headquartered in San Diego, California. The company specializes in medical equipment, offering cloud-connectable continuous positive airway pressure (CPAP) machines to treat obstructive sleep apnea (OSA). Although ResMed is based in the US, its shares are listed on both the NYSE and the ASX.
With over 10,000 employees and operations in more than 140 countries, ResMed has two main business units: Sleep and Respiratory Care, and Software as a Service (SaaS). In the Sleep and Respiratory Care unit, ResMed provides top-of-the-line CPAP machines for sleep apnea, along with non-invasive and invasive ventilation solutions for life-support patients. In the SaaS unit, the company offers software that supports durable medical equipment (DME/HME), which plays a key role in out-of-hospital care.
ResMed’s extensive digital health network, powered by its cloud-connected devices, enables the company to use its industry-leading hardware (such as masks and humidifiers) and SaaS data to generate valuable insights, enhance patient outcomes, and lower overall healthcare costs.
QBE shares
QBE started out as a marine insurance company in Townsville in the late 1800’s and today is one of the country’s largest insurers.
The insurance group operates in 27 countries and offers insurance products across commercial, consumer, reinsurance, and agriculture sectors.
While QBE began as an Australian company, only around 30% of the revenue is now generated in Australia, with another 30% from the US and the remaining revenue predominantly coming from Europe.
RMD & QBE share price valuation
As a growth company, some of the trends we might investigate from RMD include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.
Since 2021, RMD has grown revenue at a rate of 13.6% per year to reach $4,685m in FY24. Over the same stretch of time, net profit has increased from $475m to $1,021m. As for ROE, RMD last reported a ROE of 22.7%.
Since QBE is more of a ‘mature’ or ‘blue-chip’ business, some of the metrics that could be considered important include the debt/equity ratio, average yield, and return on equity, or ROE. These are useful as they give us an idea of debt levels and the company’s ability to generate a return on assets and pay out profits (which is what we want from a blue chip). In CY24, QBE Insurance Group Ltd reported a debt/equity ratio of 27.0%, meaning the company has more equity than debt.
As for dividends, since 2020 QBE has paid an average dividend yield of 2.8% per year.
Finally, in CY24, QBE reported an ROE of 17.2%. For a mature business you’re generally looking for an ROE of more than 10%, so QBE clears this hurdle.
Keep in mind that these are only a small selection of metrics. We don’t have enough information to value the business or make an investment decision. To learn more about valuation, check out one of our free online investing courses.
