ABT vs. RMD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ABT and RMD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ABT’s market capitalization of 233.90 billion USD is substantially larger than RMD’s 37.68 billion USD, indicating a significant difference in their market valuations.
With betas of 0.74 for ABT and 0.77 for RMD, both stocks show similar sensitivity to overall market movements.
| Symbol | ABT | RMD |
|---|---|---|
| Company Name | Abbott Laboratories | ResMed Inc. |
| Country | US | US |
| Sector | Healthcare | Healthcare |
| Industry | Medical - Devices | Medical - Instruments & Supplies |
| CEO | Robert B. Ford | Michael J. Farrell BE, MBA, SM |
| Price | 134.44 USD | 256.96 USD |
| Market Cap | 233.90 billion USD | 37.68 billion USD |
| Beta | 0.74 | 0.77 |
| Exchange | NYSE | NYSE |
| IPO Date | March 17, 1980 | June 2, 1995 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ABT and RMD by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ABT
30.76%
Medical - Devices Industry
- Max
- 49.04%
- Q3
- 9.53%
- Median
- -7.46%
- Q1
- -32.83%
- Min
- -82.64%
In the upper quartile for the Medical - Devices industry, ABT’s Return on Equity of 30.76% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
RMD
25.18%
Medical - Instruments & Supplies Industry
- Max
- 26.65%
- Q3
- 13.00%
- Median
- 1.08%
- Q1
- -8.11%
- Min
- -38.20%
In the upper quartile for the Medical - Instruments & Supplies industry, RMD’s Return on Equity of 25.18% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
ABT
19.13%
Medical - Devices Industry
- Max
- 21.88%
- Q3
- 6.63%
- Median
- -1.11%
- Q1
- -21.08%
- Min
- -51.95%
In the upper quartile for the Medical - Devices industry, ABT’s Return on Invested Capital of 19.13% signifies a highly effective use of its capital to generate profits when compared to its peers.
RMD
20.14%
Medical - Instruments & Supplies Industry
- Max
- 20.14%
- Q3
- 7.36%
- Median
- 1.97%
- Q1
- -6.22%
- Min
- -20.00%
In the upper quartile for the Medical - Instruments & Supplies industry, RMD’s Return on Invested Capital of 20.14% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ABT
31.89%
Medical - Devices Industry
- Max
- 44.80%
- Q3
- 9.77%
- Median
- -5.53%
- Q1
- -29.37%
- Min
- -87.68%
A Net Profit Margin of 31.89% places ABT in the upper quartile for the Medical - Devices industry, signifying strong profitability and more effective cost management than most of its peers.
RMD
26.15%
Medical - Instruments & Supplies Industry
- Max
- 28.95%
- Q3
- 11.24%
- Median
- -2.83%
- Q1
- -12.85%
- Min
- -26.41%
A Net Profit Margin of 26.15% places RMD in the upper quartile for the Medical - Instruments & Supplies industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ABT
16.97%
Medical - Devices Industry
- Max
- 30.13%
- Q3
- 13.12%
- Median
- 3.47%
- Q1
- -24.42%
- Min
- -80.56%
An Operating Profit Margin of 16.97% places ABT in the upper quartile for the Medical - Devices industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
RMD
32.10%
Medical - Instruments & Supplies Industry
- Max
- 32.10%
- Q3
- 16.03%
- Median
- 2.28%
- Q1
- -7.96%
- Min
- -26.84%
An Operating Profit Margin of 32.10% places RMD in the upper quartile for the Medical - Instruments & Supplies industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ABT | RMD |
|---|---|---|
| Return on Equity (TTM) | 30.76% | 25.18% |
| Return on Assets (TTM) | 16.58% | 17.36% |
| Return on Invested Capital (TTM) | 19.13% | 20.14% |
| Net Profit Margin (TTM) | 31.89% | 26.15% |
| Operating Profit Margin (TTM) | 16.97% | 32.10% |
| Gross Profit Margin (TTM) | 55.89% | 58.53% |
Financial Strength
Current Ratio
ABT
1.78
Medical - Devices Industry
- Max
- 12.68
- Q3
- 6.30
- Median
- 4.05
- Q1
- 1.85
- Min
- 0.01
ABT’s Current Ratio of 1.78 falls into the lower quartile for the Medical - Devices industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
RMD
3.41
Medical - Instruments & Supplies Industry
- Max
- 6.79
- Q3
- 4.57
- Median
- 2.64
- Q1
- 1.81
- Min
- 1.10
RMD’s Current Ratio of 3.41 aligns with the median group of the Medical - Instruments & Supplies industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ABT
0.27
Medical - Devices Industry
- Max
- 2.34
- Q3
- 1.09
- Median
- 0.37
- Q1
- 0.08
- Min
- 0.00
ABT’s Debt-to-Equity Ratio of 0.27 is typical for the Medical - Devices industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
RMD
0.15
Medical - Instruments & Supplies Industry
- Max
- 1.46
- Q3
- 0.74
- Median
- 0.41
- Q1
- 0.16
- Min
- 0.03
Falling into the lower quartile for the Medical - Instruments & Supplies industry, RMD’s Debt-to-Equity Ratio of 0.15 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
ABT
15.39
Medical - Devices Industry
- Max
- 18.18
- Q3
- 7.53
- Median
- 0.85
- Q1
- -9.80
- Min
- -33.94
ABT’s Interest Coverage Ratio of 15.39 is in the upper quartile for the Medical - Devices industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
RMD
226.60
Medical - Instruments & Supplies Industry
- Max
- 25.04
- Q3
- 8.80
- Median
- 3.66
- Q1
- -3.85
- Min
- -11.93
With an Interest Coverage Ratio of 226.60, RMD demonstrates a superior capacity to service its debt, placing it well above the typical range for the Medical - Instruments & Supplies industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ABT | RMD |
|---|---|---|
| Current Ratio (TTM) | 1.78 | 3.41 |
| Quick Ratio (TTM) | 1.27 | 2.49 |
| Debt-to-Equity Ratio (TTM) | 0.27 | 0.15 |
| Debt-to-Asset Ratio (TTM) | 0.16 | 0.11 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.60 | -0.05 |
| Interest Coverage Ratio (TTM) | 15.39 | 226.60 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ABT and RMD. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ABT
1.70%
Medical - Devices Industry
- Max
- 3.57%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.70%, ABT offers a more attractive income stream than most of its peers in the Medical - Devices industry, signaling a strong commitment to shareholder returns.
RMD
0.83%
Medical - Instruments & Supplies Industry
- Max
- 4.02%
- Q3
- 0.38%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.83%, RMD offers a more attractive income stream than most of its peers in the Medical - Instruments & Supplies industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ABT
28.92%
Medical - Devices Industry
- Max
- 102.12%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ABT’s Dividend Payout Ratio of 28.92% is in the upper quartile for the Medical - Devices industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
RMD
23.14%
Medical - Instruments & Supplies Industry
- Max
- 76.77%
- Q3
- 11.37%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
RMD’s Dividend Payout Ratio of 23.14% is in the upper quartile for the Medical - Instruments & Supplies industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ABT | RMD |
|---|---|---|
| Dividend Yield (TTM) | 1.70% | 0.83% |
| Dividend Payout Ratio (TTM) | 28.92% | 23.14% |
Valuation
Price-to-Earnings Ratio
ABT
17.40
Medical - Devices Industry
- Max
- 90.56
- Q3
- 56.92
- Median
- 43.19
- Q1
- 21.79
- Min
- 5.55
In the lower quartile for the Medical - Devices industry, ABT’s P/E Ratio of 17.40 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
RMD
28.71
Medical - Instruments & Supplies Industry
- Max
- 45.65
- Q3
- 44.10
- Median
- 35.47
- Q1
- 29.60
- Min
- 21.65
In the lower quartile for the Medical - Instruments & Supplies industry, RMD’s P/E Ratio of 28.71 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Forward P/E to Growth Ratio
ABT
1.73
Medical - Devices Industry
- Max
- 6.56
- Q3
- 3.52
- Median
- 2.22
- Q1
- 0.55
- Min
- 0.03
ABT’s Forward PEG Ratio of 1.73 is within the middle range of its peers in the Medical - Devices industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
RMD
3.40
Medical - Instruments & Supplies Industry
- Max
- 5.80
- Q3
- 3.68
- Median
- 2.56
- Q1
- 1.87
- Min
- 0.22
RMD’s Forward PEG Ratio of 3.40 is within the middle range of its peers in the Medical - Instruments & Supplies industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
ABT
5.52
Medical - Devices Industry
- Max
- 15.74
- Q3
- 8.12
- Median
- 3.40
- Q1
- 2.37
- Min
- 0.42
ABT’s P/S Ratio of 5.52 aligns with the market consensus for the Medical - Devices industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
RMD
7.50
Medical - Instruments & Supplies Industry
- Max
- 12.87
- Q3
- 6.95
- Median
- 3.45
- Q1
- 2.24
- Min
- 0.71
RMD’s P/S Ratio of 7.50 is in the upper echelon for the Medical - Instruments & Supplies industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ABT
4.81
Medical - Devices Industry
- Max
- 16.65
- Q3
- 8.03
- Median
- 3.73
- Q1
- 1.92
- Min
- 0.65
ABT’s P/B Ratio of 4.81 is within the conventional range for the Medical - Devices industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
RMD
6.80
Medical - Instruments & Supplies Industry
- Max
- 9.60
- Q3
- 5.48
- Median
- 3.37
- Q1
- 1.95
- Min
- 0.65
RMD’s P/B Ratio of 6.80 is in the upper tier for the Medical - Instruments & Supplies industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ABT | RMD |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 17.40 | 28.71 |
| Forward PEG Ratio (TTM) | 1.73 | 3.40 |
| Price-to-Sales Ratio (P/S, TTM) | 5.52 | 7.50 |
| Price-to-Book Ratio (P/B, TTM) | 4.81 | 6.80 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 35.14 | 24.09 |
| EV-to-EBITDA (TTM) | 21.49 | 22.04 |
| EV-to-Sales (TTM) | 5.68 | 7.48 |