Is ResMed A Better Way Than Stryker To Own Medical Device Growth

Stryker's sales have grown about 10% a year on average over the past three years, and so have ResMed's. That shared growth rate in medical devices is the bet the two have in common. Stryker (SYK) is the giant, selling hospitals everything from hip and knee products to capital equipment. ResMed is a sleep device maker with less than a quarter of Stryker's revenue. Stryker costs 32.6 times its past year's earnings, against 21.9 times for ResMed. So does Stryker's reach justify that higher price? The answer starts with the latest forecast and news from each company.

Stryker Narrowed Its Forecast, But A Plant Problem Persists

Stryker narrowed its 2026 sales forecast in July, raising the low end. It now expects organic sales growth of 8.3% to 9.3%. Management tied the raise to strong orders for its capital products. Management also said Stryker ended the second quarter with an elevated backlog and zero cancellations.

The trouble is a supply disruption in its peripheral vascular business, which left a meaningful backorder. In July, management said it should reach a manageable level by the end of the third quarter. On September 8, 2026, Stryker shares fell 8.8%. The drop came after Stryker's CFO said a peripheral vascular manufacturing issue once thought resolved still persists.

ResMed's latest signal is different. On September 15, a news report said ResMed's shares had been upgraded. The reason given was that setbacks at competitors could help ResMed capture more market share. That report is an outside opinion, and it commits ResMed to nothing.

How Much Of Each Sale Does Stryker Keep?

Stryker kept $14.40 of net profit from every $100 of sales over the past year. ResMed kept $26.90. Operating margin, the share of sales left after running costs, shows the same split: 22% at Stryker against 34% at ResMed.

Stryker also looks to acquisitions to drive growth. Management calls acquisitions its first use of cash, and Stryker's AVS deal in peripheral vascular closed in the second quarter. In August, Stryker agreed to buy ZuriMED to add to its shoulder offering. Stryker's debt equals 12.3% of its market value, against 2.5% for ResMed.

ResMed wins on profit and on debt, so Stryker's case has to rest on price and on growth.

Stryker Is Cheaper On Sales, ResMed Grew Faster

Stryker is the cheaper stock on one measure, price to sales. Stryker's shares cost 4.7 times its yearly sales, against 5.9 times for ResMed. On earnings, ResMed stays the cheaper of the two.

ResMed's revenue rose 9.9% over the past year, against 8.5% for Stryker. On the July call, Stryker's management said beating the top of its forecast needs a stronger procedure market or faster production.

The risk for a Stryker holder is paying the higher earnings multiple while its plants catch up. Stryker shares lost 26% over the past year, including dividends. ResMed shares lost 18.2%. Neither loss is a reason to pick one stock over the other.

ResMed comes out ahead on earnings multiple, growth, margins, and debt. Stryker is cheaper on sales and far larger, with an elevated backlog of orders. The evidence favors ResMed. One result would start to narrow ResMed's lead: Stryker's full-year 2026 growth coming in above the top of its own range.

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