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

Institutional & Insider Ownership

0.6% of Lianluo Smart shares are owned by institutional investors. Comparatively, 67.3% of ResMed shares are owned by institutional investors. 22.9% of Lianluo Smart shares are owned by insiders. Comparatively, 1.2% of ResMed shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Lianluo Smart and ResMed’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lianluo Smart N/A N/A N/A
ResMed 17.65% 26.46% 14.91%

Earnings & Valuation

This table compares Lianluo Smart and ResMed’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lianluo Smart $560,000.00 47.74 -$8.91 million N/A N/A
ResMed $2.34 billion 7.24 $315.58 million $3.53 33.48

ResMed has higher revenue and earnings than Lianluo Smart.

Volatility & Risk

Lianluo Smart has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, ResMed has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Dividends

ResMed pays an annual dividend of $1.48 per share and has a dividend yield of 1.3%. Lianluo Smart does not pay a dividend. ResMed pays out 41.9% of its earnings in the form of a dividend. ResMed has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Lianluo Smart and ResMed, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lianluo Smart 0 0 0 0 N/A
ResMed 0 2 4 0 2.67

ResMed has a consensus price target of $111.33, suggesting a potential downside of 5.80%. Given ResMed’s higher possible upside, analysts clearly believe ResMed is more favorable than Lianluo Smart.

Summary

ResMed beats Lianluo Smart on 10 of the 14 factors compared between the two stocks.

About Lianluo Smart

Lianluo Smart Limited, through its subsidiaries, designs, develops, markets, and distributes medical products and medical components primarily in the People's Republic of China. The company offers medical devices, including sleep apnea diagnostic products, general hospital products, medical compressors, and related supporting products, such as laryngoscope. It also distributes medical products designed and manufactured by other companies. The company sells its products primarily through distributors; and directly to hospital, physical examination centers, and governmental agencies, as well as to individuals. The company was formerly known as Dehaier Medical Systems Limited and changed its name to Lianluo Smart Limited in November 2016. Lianluo Smart Limited was founded in 2003 and is headquartered in Beijing, the People's Republic of China. Lianluo Smart Limited operates as a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.

About ResMed

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications that diagnose, treat, and manage respiratory disorders comprising sleep disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease, and other chronic diseases. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, portable oxygen concentrators, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides humidifiers, carry bags, and breathing circuits; data communications and control products, such as AirView Diagnostics, EasyCare, ResLink, ResControl, ResControl II, TxControl, ResScan, and ResTraxx modules; U-Sleep, which enables automated patient coaching through a text, email, or interactive voice phone call; and myAir, a patient engagement application that provides sleep data and a daily score based on their previous night's data, as well as offers business management software and services to medical equipment and home health providers. It markets its products to sleep clinics, home healthcare dealers, patients, hospitals, physicians, and third-party payers through a network of distributors and direct sales force in approximately 120 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

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