ResMed (NYSE:RMD) & Psykey (OTCMKTS:CEOS) Critical Survey

ResMed (NYSE:RMD) and Psykey (OTCMKTS:CEOS) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares ResMed and Psykey”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ResMed	$4.69 billion	7.52	$1.02 billion	$6.51	36.83
Psykey	N/A	N/A	N/A	($0.41)	-0.05

ResMed has higher revenue and earnings than Psykey. Psykey is trading at a lower price-to-earnings ratio than ResMed, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for ResMed and Psykey, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ResMed	1	5	6	1	2.54
Psykey	0	0	0	0	N/A

ResMed currently has a consensus target price of $218.18, suggesting a potential downside of 8.50%. Given ResMed’s higher probable upside, analysts clearly believe ResMed is more favorable than Psykey.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ResMed	21.79%	25.00%	16.67%
Psykey	N/A	N/A	N/A

Insider & Institutional Ownership

55.0% of ResMed shares are owned by institutional investors. 1.2% of ResMed shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

ResMed beats Psykey on 11 of the 11 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 Psykey

Psykey, Inc. engages in the research, development, and commercialization of entheogenic, adaptogenic, and nootropic ingredients and formulations for its functional product lines to improve and optimize life. The company also engages in the development of technologies for the composition, bioavailability, and targeted delivery of entheogen-based therapeutics for the psychedelic market. Its retail products include functional mushroom coffees and teas, oral supplements, and single serve drink mixes. The company was formerly known as CeCors, Inc. and changed its name to Psykey, Inc. in August 2021. Psykey, Inc. was founded in 2002 and is based in Toronto, Canada.