AZN vs. RMD: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AZN and RMD, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AZN’s market capitalization of 430.65 billion USD is substantially larger than RMD’s 37.68 billion USD, indicating a significant difference in their market valuations.
RMD carries a higher beta at 0.77, indicating it’s more sensitive to market moves, while AZN (beta: 0.17) exhibits greater stability.
AZN trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, RMD is a standard domestic listing.
| Symbol | AZN | RMD |
|---|---|---|
| Company Name | AstraZeneca PLC | ResMed Inc. |
| Country | GB | US |
| Sector | Healthcare | Healthcare |
| Industry | Drug Manufacturers - General | Medical - Instruments & Supplies |
| CEO | Pascal Claude Roland Soriot | Michael J. Farrell BE, MBA, SM |
| Price | 69.45 USD | 256.96 USD |
| Market Cap | 430.65 billion USD | 37.68 billion USD |
| Beta | 0.17 | 0.77 |
| Exchange | NASDAQ | NYSE |
| IPO Date | May 12, 1993 | June 2, 1995 |
| ADR | Yes | No |
Historical Performance
This chart compares the performance of AZN 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
AZN
19.18%
Drug Manufacturers - General Industry
- Max
- 95.59%
- Q3
- 76.92%
- Median
- 30.71%
- Q1
- 8.97%
- Min
- -14.85%
AZN’s Return on Equity of 19.18% is on par with the norm for the Drug Manufacturers - General industry, indicating its profitability relative to shareholder equity is typical for the sector.
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
AZN
10.93%
Drug Manufacturers - General Industry
- Max
- 25.72%
- Q3
- 17.89%
- Median
- 11.47%
- Q1
- 9.39%
- Min
- 2.87%
AZN’s Return on Invested Capital of 10.93% is in line with the norm for the Drug Manufacturers - General industry, reflecting a standard level of efficiency in generating profits from its capital base.
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
AZN
14.14%
Drug Manufacturers - General Industry
- Max
- 34.51%
- Q3
- 23.04%
- Median
- 14.73%
- Q1
- 11.78%
- Min
- 2.18%
AZN’s Net Profit Margin of 14.14% is aligned with the median group of its peers in the Drug Manufacturers - General industry. This indicates its ability to convert revenue into profit is typical for the sector.
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
AZN
19.21%
Drug Manufacturers - General Industry
- Max
- 40.70%
- Q3
- 28.90%
- Median
- 23.41%
- Q1
- 19.05%
- Min
- 16.13%
AZN’s Operating Profit Margin of 19.21% is around the midpoint for the Drug Manufacturers - General industry, indicating that its efficiency in managing core business operations is typical for the sector.
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 | AZN | RMD |
|---|---|---|
| Return on Equity (TTM) | 19.18% | 25.18% |
| Return on Assets (TTM) | 7.31% | 17.36% |
| Return on Invested Capital (TTM) | 10.93% | 20.14% |
| Net Profit Margin (TTM) | 14.14% | 26.15% |
| Operating Profit Margin (TTM) | 19.21% | 32.10% |
| Gross Profit Margin (TTM) | 81.41% | 58.53% |
Financial Strength
Current Ratio
AZN
0.90
Drug Manufacturers - General Industry
- Max
- 1.67
- Q3
- 1.37
- Median
- 1.26
- Q1
- 0.87
- Min
- 0.39
AZN’s Current Ratio of 0.90 aligns with the median group of the Drug Manufacturers - General industry, indicating that its short-term liquidity is in line with its sector peers.
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
AZN
0.77
Drug Manufacturers - General Industry
- Max
- 2.95
- Q3
- 2.44
- Median
- 0.86
- Q1
- 0.68
- Min
- 0.09
AZN’s Debt-to-Equity Ratio of 0.77 is typical for the Drug Manufacturers - General 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
AZN
7.95
Drug Manufacturers - General Industry
- Max
- 27.46
- Q3
- 14.40
- Median
- 7.80
- Q1
- 4.07
- Min
- 1.67
AZN’s Interest Coverage Ratio of 7.95 is positioned comfortably within the norm for the Drug Manufacturers - General industry, indicating a standard and healthy capacity to cover its interest payments.
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 | AZN | RMD |
|---|---|---|
| Current Ratio (TTM) | 0.90 | 3.41 |
| Quick Ratio (TTM) | 0.70 | 2.49 |
| Debt-to-Equity Ratio (TTM) | 0.77 | 0.15 |
| Debt-to-Asset Ratio (TTM) | 0.30 | 0.11 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.49 | -0.05 |
| Interest Coverage Ratio (TTM) | 7.95 | 226.60 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AZN 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
AZN
1.87%
Drug Manufacturers - General Industry
- Max
- 8.72%
- Q3
- 4.10%
- Median
- 3.34%
- Q1
- 1.89%
- Min
- 0.00%
AZN’s Dividend Yield of 1.87% is in the lower quartile for the Drug Manufacturers - General industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
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
AZN
63.60%
Drug Manufacturers - General Industry
- Max
- 266.46%
- Q3
- 78.91%
- Median
- 60.27%
- Q1
- 43.74%
- Min
- 0.00%
AZN’s Dividend Payout Ratio of 63.60% is within the typical range for the Drug Manufacturers - General industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
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 | AZN | RMD |
|---|---|---|
| Dividend Yield (TTM) | 1.87% | 0.83% |
| Dividend Payout Ratio (TTM) | 63.60% | 23.14% |
Valuation
Price-to-Earnings Ratio
AZN
28.12
Drug Manufacturers - General Industry
- Max
- 27.96
- Q3
- 25.84
- Median
- 18.32
- Q1
- 16.65
- Min
- 3.39
At 28.12, AZN’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Drug Manufacturers - General industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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
AZN
2.56
Drug Manufacturers - General Industry
- Max
- 3.10
- Q3
- 3.09
- Median
- 2.72
- Q1
- 2.18
- Min
- 1.02
AZN’s Forward PEG Ratio of 2.56 is within the middle range of its peers in the Drug Manufacturers - General 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
AZN
3.98
Drug Manufacturers - General Industry
- Max
- 6.47
- Q3
- 4.47
- Median
- 3.53
- Q1
- 1.96
- Min
- 0.41
AZN’s P/S Ratio of 3.98 aligns with the market consensus for the Drug Manufacturers - General 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
AZN
5.33
Drug Manufacturers - General Industry
- Max
- 7.80
- Q3
- 7.80
- Median
- 5.30
- Q1
- 4.06
- Min
- 1.08
The P/B Ratio is often not a primary valuation metric for the Drug Manufacturers - General industry.
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 | AZN | RMD |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 28.12 | 28.71 |
| Forward PEG Ratio (TTM) | 2.56 | 3.40 |
| Price-to-Sales Ratio (P/S, TTM) | 3.98 | 7.50 |
| Price-to-Book Ratio (P/B, TTM) | 5.33 | 6.80 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 22.59 | 24.09 |
| EV-to-EBITDA (TTM) | 13.82 | 22.04 |
| EV-to-Sales (TTM) | 4.46 | 7.48 |