ResMed or Steris: Which Stock Has More Upside?
Even as Steris surged 12% during the past Week, its peer ResMed may be a better choice. Consistently evaluating alternatives is core to sound investment approach. ResMed (RMD) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Steris (STE) stock, suggesting you may be better off investing in RMD
- RMD’s Last 12 Months revenue growth was 9.4%, vs. STE’s 7.1%.
- In addition, its Last 3-Year Average revenue growth came in at 13.3%, ahead of STE’s 9.0%.
- RMD leads on profitability over both periods – LTM margin of 33.5% and 3-year average of 30.3%.
A single stock can be risky, but there is a huge value to a broader, diversified approach. Should you buy one stock you like or build a portfolio designed to win across cycles? Our numbers show that the Trefis High Quality Portfolio has turned stock-picking uncertainty into market-beating consistency. This portfolio is incorporated in the asset allocation strategy of Empirical Asset Management — a Boston area wealth manager and Trefis partner — whose asset allocation framework yielded positive returns during the 2008-09 period when the S&P lost more than 40%.
STE provides infection prevention products and services globally, including sterilization equipment, cleaning chemistries, and consumables for healthcare, applied sterilization, and life sciences industries. RMD develops and markets medical devices and cloud software for healthcare, including remote monitoring systems and personalized therapy apps for sleep apnea management.
Valuation & Performance Overview
| STE | RMD | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 24.9 | 20.9 | RMD |
| Revenue Growth | |||
| Last Quarter | 9.9% | 9.1% | STE |
| Last 12 Months | 7.1% | 9.4% | RMD |
| Last 3 Year Average | 9.0% | 13.3% | RMD |
| Operating Margins | |||
| Last 12 Months | 18.3% | 33.5% | RMD |
| Last 3 Year Average | 17.8% | 30.3% | RMD |
| Momentum | |||
| Last 3 Year Return | 66.1% | 21.6% | STE |
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 more revenue details: STE Revenue Comparison | RMD Revenue Comparison
See more margin details: STE Operating Income Comparison | RMD Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell RMD Stock to see if ResMed’s edge holds up under the hood or if Steris still has cards to play (see Buy or Sell STE Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| STE Return | 25% | 29% | -23% | 20% | -6% | 27% | 80% | ||
| RMD Return | 38% | 23% | -19% | -17% | 34% | 10% | 69% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 108% | <=== | |
| Monthly Win Rates [3] | |||||||||
| STE Win Rate | 67% | 50% | 50% | 58% | 42% | 50% | 53% | ||
| RMD Win Rate | 75% | 50% | 50% | 58% | 50% | 60% | 57% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| STE Max Drawdown | -29% | -9% | -34% | -4% | -9% | -2% | -15% | ||
| RMD Max Drawdown | -26% | -15% | -26% | -35% | -4% | -10% | -19% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/7/2025 (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 to see how the stock has fallen and recovered in the past.
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.