Analyzing ResMed (NYSE:RMD) and Co-Diagnostics (NASDAQ:CODX)

ResMed (NYSE:RMD) and Co-Diagnostics (NASDAQ:CODX) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares ResMed and Co-Diagnostics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ResMed	25.34%	26.17%	18.60%
Co-Diagnostics	-563.93%	-54.94%	-49.28%

Analyst Ratings

This is a summary of current recommendations and price targets for ResMed and Co-Diagnostics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ResMed	1	6	6	2	2.60
Co-Diagnostics	0	1	0	0	2.00

ResMed currently has a consensus target price of $244.73, suggesting a potential upside of 4.89%. Co-Diagnostics has a consensus target price of $1.50, suggesting a potential upside of 203.03%. Given Co-Diagnostics’ higher possible upside, analysts plainly believe Co-Diagnostics is more favorable than ResMed.

Valuation and Earnings

This table compares ResMed and Co-Diagnostics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ResMed	$4.93 billion	6.96	$1.02 billion	$8.47	27.55
Co-Diagnostics	$7.32 million	2.16	-$35.33 million	($1.38)	-0.36

ResMed has higher revenue and earnings than Co-Diagnostics. Co-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

ResMed has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Co-Diagnostics has a beta of -0.63, suggesting that its share price is 163% less volatile than the S&P 500.

Insider and Institutional Ownership

55.0% of ResMed shares are held by institutional investors. Comparatively, 15.0% of Co-Diagnostics shares are held by institutional investors. 0.7% of ResMed shares are held by company insiders. Comparatively, 6.1% of Co-Diagnostics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

ResMed beats Co-Diagnostics on 13 of the 15 factors compared between the two stocks.

About ResMed

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients’ device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME) to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies; and MEDIFOX DAN’s software solutions. The company markets its products to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

About Co-Diagnostics

Co-Diagnostics, Inc., a molecular diagnostics company, develops, manufactures, and sells reagents used for diagnostic tests that function through the detection and/or analysis of nucleic acid molecules in the United States and internationally. The company offers Co-Dx PCR platform, a polymerase chain reaction (PCR) testing to patients in point-of-care and at-home setting. It also provides PCR diagnostic tests for COVID-19, influenza, tuberculosis, hepatitis B and C, human papillomavirus, malaria, chikungunya, dengue, and the zika virus. In addition, the company offers three multiplexed tests to test mosquitos for the identification of diseases carried by the mosquitos; molecular tools for detection of infectious diseases, liquid biopsy for cancer screening, and agricultural applications; tests that identify genetic traits in plant and animal genomes; and portable diagnostic device designed to bring PCR to patients in point-of-care and at-home settings. The company was incorporated in 2013 and is headquartered in Salt Lake City, Utah.