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The Rea Group Ltd and Resmed CDI have shown notable movements in their share prices this year. Rea Group, a prominent ASX growth stock, has seen its share price increase by 7.3% since the beginning of 2024, while Resmed's share price is currently 11% below its 52-week high. This analysis explores the factors behind these changes and the current standing of both companies.
REA Group Ltd (ASX: REA)
Founded in 1995 and based in Melbourne, REA Group is a leading real estate advertising company, primarily known for its Realestate.com.au platform. The company, majority-owned by News Corp, operates globally, with property websites in around ten countries and approximately 20,000 agents using its services. In Australia, Realestate.com.au attracts over 55 million visits monthly.
REA Group's revenue largely comes from property listings and financial services, such as mortgage broking. The platform's significant user base and market position give it a competitive edge, allowing it to charge premium rates compared to competitors like Domain.
Resmed CDI (ASX: RMD)
Established in 1989 and now headquartered in San Diego, California, Resmed specializes in medical equipment, particularly cloud-connected continuous positive airway pressure (CPAP) machines for treating obstructive sleep apnea (OSA). Resmed, which lists its shares as CDIs on the ASX while maintaining a primary listing on the NYSE, operates in over 140 countries and employs more than 10,000 people.
The company's operations are divided into two main areas: Sleep and Respiratory Care, and Software as a Service (SaaS). Resmed's devices and cloud-based services enhance patient care and reduce healthcare costs by providing critical insights and improving outcomes.
For growth companies like REA Group, evaluating share price involves examining metrics such as the price-to-sales ratio. Currently, REA Group’s price-to-sales ratio stands at 18.69x, higher than its 5-year average of 12.29x, indicating that shares are trading above their historical average. This ratio is one of many valuation tools and should be considered alongside other factors for a comprehensive assessment.
