Is ResMed a Better Buy Than Medtronic?
Medtronic surged 5.7% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer ResMed gives you more. ResMed (RMD) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Medtronic (MDT) stock, suggesting you may be better off investing in RMD
- RMD’s quarterly revenue growth was 10.8%, vs. MDT’s 8.7%.
- In addition, its Last 12 Months revenue growth came in at 10.3%, ahead of MDT’s 6.9%.
- RMD leads on profitability over both periods – LTM margin of 34.6% and 3-year average of 31.6%.
These differences become even clearer when you look at the financials side by side. The table highlights how MDT’s fundamentals stack up against those of RMD on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| MDT | RMD | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 15.1 | 14.1 | RMD |
| Revenue Growth | |||
| Last Quarter | 8.7% | 10.8% | RMD |
| Last 12 Months | 6.9% | 10.3% | RMD |
| Last 3 Year Average | 4.9% | 11.3% | RMD |
| Operating Margins | |||
| Last 12 Months | 18.6% | 34.6% | RMD |
| Last 3 Year Average | 18.5% | 31.6% | RMD |
| Momentum | |||
| Last 3 Year Return | 2.6% | -13.0% | MDT |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See detailed fundamentals on Buy or Sell RMD Stock and Buy or Sell MDT Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| MDT Return | -10% | -23% | 10% | 0% | 24% | -23% | -26% | ||
| RMD Return | 23% | -19% | -17% | 34% | 6% | -24% | -10% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 11% | 103% | <=== | |
| Monthly Win Rates [3] | |||||||||
| MDT Win Rate | 42% | 42% | 42% | 50% | 58% | 17% | 42% | ||
| RMD Win Rate | 50% | 50% | 58% | 50% | 58% | 17% | 47% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 67% | 65% | <=== | |
| Max Drawdowns [4] | |||||||||
| MDT Max Drawdown | -26% | -32% | -23% | -13% | -14% | -28% | -23% | ||
| RMD Max Drawdown | -19% | -27% | -44% | -17% | -20% | -33% | -27% | ||
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | -13% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 6/3/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read RMD Dip Buyer Analyses and MDT Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about MDT or RMD? Consider portfolio approach.
Portfolios Beat Stock Picking
Single stocks swing wildly, but staying invested matters. A well-built portfolio helps you stay invested, captures upside, and softens the blows from individual stocks.
Beating the market consistently is hard, but the Trefis High Quality (HQ) Portfolio makes it look achievable. By selecting 30 high-conviction stocks, the HQ strategy has historically outpaced the S&P 500, S&P Mid-cap, and Russell 2000. See how this curated selection delivers superior risk-adjusted returns in our detailed performance factsheet.