
ResMed vs Fisher & Paykel Healthcare shares
Looking at the ASX 200 healthcare sector, you’re likely to come across two standout names: ResMed Inc (ASX: RMD) and Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH). Both are leaders in designing and manufacturing respiratory and sleep apnea devices. With the health tech industry under the spotlight, many investors want to knowâbetween ResMed shares and Fisher & Paykel Healthcare shares, which offers better value right now?
The case for ResMed
ResMed is a global leader in sleep technology and respiratory devices, best known for its CPAP machines, masks, and related cloud-based software. Originally founded in Australia but now headquartered in the US, ResMed operates across more than 140 countries and serves both hospitals and home-based patients. Its broad product range targets sleep apnea, COPD, and other respiratory conditions, as well as providing digital tools for healthcare professionals and carers.
Notably, ResMed boasts a substantial market capitalisation at $45.51 billion, making it one of the larger players in the healthcare space. Its price-to-earnings (P/E) ratio sits at 21.51, and earnings per share are reported at 1.043. The current dividend yield is 1.11%, with a dividend per share of $0.38. However, it’s worth noting that its dividends are unfranked andâaccording to the data hereâYear To Date Return is a negative -10.3%. This recent underperformance might catch the eye of value-focused investors looking for a turnaround.
ResMed’s dividend record is steady with consistent, albeit modest, growth over the years, but it doesn’t offer franking creditsâso it’s less appealing to income investors seeking tax-effective Australian dividends.
The case for Fisher & Paykel
Fisher & Paykel Healthcare is another respiratory heavyweight, based in New Zealand. While also strong in sleep apnea devices, Fisher & Paykel Healthcare puts even more emphasis on hospital-focused respiratory systems, particularly in acute and critical care. The company earns a large proportion of its revenue from the US and Europe, and invests heavily in research and development, maintaining a robust innovation pipeline.
Fisher & Paykel Healthcare’s market cap sits at $21.97 billionâroughly half of ResMed’s. Its current P/E ratio is a hefty 57.56 and EPS is listed as 0.793. Dividend yield is just above ResMed at 1.18%, with dividend per share at $0.44, though these also come unfranked. What really jumps out to me, though, is the company’s strong price momentum: its Year To Date Return is 13.54%, a significant positive in contrast to ResMed’s negative performance.
Their dividend stream includes both interim and supplemental payments, and like ResMed, there’s no franking benefit for Australian investors.
Valuation comparison
With both companies serving similar end-markets, their valuation metrics reveal a strong contrast:
| Metric | ResMed | Fisher & Paykel |
|---|---|---|
| Market Cap | $45.51 billion | $21.97 billion |
| P/E Ratio | 21.51 | 57.56 |
| Dividend Yield | 1.11% | 1.18% |
| Dividend per Share | $0.38 | $0.44 |
| Earnings per Share | 1.043 | 0.793 |
| YTD Return | -10.3% | 13.5% |
ResMed trades at a notably lower P/E than Fisher & Paykel Healthcare, making it look comparatively cheaper based on earnings. The two offer similar dividend yields, both unfranked. ResMed also delivers a higher EPS.
Recent share price momentum
Comparing recent share price performance up to 30 September 2026:
- As of 30 September 2026, ResMed shares closed at $31.98, rising 0.95% that day, but are down -10.3% for the year to date.
- On the same date, Fisher & Paykel Healthcare shares closed at $37.43, rising 1.71% on the day, and are up 13.5% year to date.
- Fisher & Paykel Healthcare has enjoyed stronger recent momentum, with a solid upward trend during September compared to ResMed’s more muted, slightly negative swings.
Which is the better buy?
If I’m weighing up ResMed and Fisher & Paykel Healthcare on value right now, I’d lean towards ResMed. Its P/E ratio of 21.51 is much lower than Fisher & Paykel Healthcare’s 57.56, suggesting ResMed shares are more attractively priced relative to current earningsâespecially since both companies are exposed to similar markets and risks.
While Fisher & Paykel Healthcare is running hot with a strong year-to-date share price gain, that momentum comes at the cost of a very steep valuation multiple. Even with a slightly higher dividend yield, I don’t see enough income upside to justify paying nearly three times the P/E for Fisher & Paykel Healthcare.
Both companies are outstanding in healthcare tech, and Fisher & Paykel’s recent gains are impressive, but for pure valuation appeal, my pick would be ResMed. I think it’s offering better value for investors looking for quality, scale, and the potential for a turnaround in sentiment.
The post ResMed vs Fisher & Paykel Healthcare: Which is better value? appeared first on The Motley Fool Australia.
Should you invest $1,000 in ResMed right now?
Before you buy ResMed shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ResMed wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 August 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- How to build a $52,000 passive income with ASX shares
- Is the ResMed share price a cheap buy?
- 5 best ASX shares to buy in October
- How I’d build a $50,000 ASX share portfolio today
- 5 things to watch on the ASX 200 on Thursday
Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

