How ResMed and Netwealth Shares Stack Up in 2025: A Valuation Perspective

April 30, 2025 03:38 PM AEST | By Team Kalkine Media

How ResMed and Netwealth Shares Stack Up in 2025: A Valuation Perspective — Image source: Shutterstock

ResMed’s Healthcare Edge

Headquartered in San Diego but with Australian roots, ResMed (ASX:RMD) has carved out a strong niche in the global medical device industry. The company is known for its CPAP machines, which are used to treat obstructive sleep apnea (OSA), and it has an extensive reach across more than 140 countries. With over 10,000 employees, ResMed’s operations are split into two core divisions: Sleep and Respiratory Care and Software as a Service (SaaS).

The Sleep and Respiratory Care unit focuses on life-support and nighttime therapy, while its SaaS offerings assist in managing out-of-hospital care, especially in the durable medical equipment (DME/HME) space. By leveraging data insights from its connected devices, ResMed is not only improving health outcomes but also reducing the overall cost of care.

Despite strong fundamentals and revenue growth over recent years, the current price-to-sales ratio of 4.97x for ResMed shares sits significantly below its 5-year average of 8.70x. This could indicate that the shares are trading at a valuation that might not fully reflect its operational progress. Factors such as increased revenue, shifts in sentiment, or broader market trends can all impact this metric.

Netwealth’s Scalable Fintech Model

In contrast, Netwealth (ASX:NWL) operates in the financial technology landscape. It offers a wealth management platform used by financial planners to manage client assets efficiently. With over 140,000 active accounts and more than $88 billion in funds under administration, Netwealth has achieved impressive scale.

What sets it apart is its streamlined, user-focused platform. Investors can track performance, access tax reports, and manage a wide array of financial instruments via a single dashboard – a significant advantage in a competitive sector.

Notably, Netwealth shares are currently around 45.2% above their 52-week low, highlighting the market’s continued confidence in its growth trajectory.

The Broader Picture

While valuation ratios such as price-to-sales are only one lens through which to view a company, they offer a useful starting point. These companies, operating in distinct but growing industries, illustrate some of the diversity and opportunity found within the broader ASX dividend stocks universe. Understanding their market positioning and financial metrics can help frame their long-term potential in the current ASX landscape.

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