Investors looking for exposure to the growing field of respiratory healthcare and sleep apnoea treatment may find themselves comparing two ASX-listed giants: Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) and ResMed Inc. (ASX: RMD).
Both companies are global leaders with strong track records, but when it comes to deciding which to buy today, the case for ResMed shares looks particularly compelling.
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Fisher & Paykel
Fisher & Paykel is a New Zealand-based medical device company that designs, manufactures and markets equipment used in acute and chronic respiratory care, surgical applications, and sleep apnoea treatment.
The company has a presence in more than 120 countries and has built a strong reputation over decades. However, despite the quality of the business, analysts are taking a more measured view for now.
Morgan Stanley currently has an equal-weight (hold) rating on the stock with a $36.30 price target, compared to its recent share price of $31.40. That represents some upside, but the broker isn't quite ready to call it a buy.
ResMed Inc
ResMed, on the other hand, continues to win fans among analysts — and for good reason.
The company is the world's leading manufacturer of CPAP devices and masks for the treatment of Obstructive Sleep Apnea (OSA), a condition that is still significantly underdiagnosed. With rising awareness and greater access to sleep health services, this market is poised for long-term growth.
Goldman Sachs recently reaffirmed its conviction buy rating on ResMed shares with a $49.00 price target, well above the current share price of $33.82.
Goldman's bullish thesis rests on three pillars: Strong CPAP patient growth driven by increasing awareness of OSA. Market share gains, with ResMed already holding the #1 position globally. And margin expansion, supported by a favourable product mix and better cost efficiency.
The broker is forecasting around 10% annual revenue growth and 15% annual earnings growth through FY 2027 — a powerful combination for long-term investors.
Goldman also notes that ResMed's valuation remains attractive, with its trading multiple below its 10-year average, offering room for a potential re-rating as earnings momentum builds.
So, which one should you buy?
While Fisher & Paykel remains a high-quality healthcare business, analysts appear more cautious on its near-term outlook. ResMed, in contrast, looks well-positioned to benefit from secular growth trends, market leadership, and improving profitability — and it is trading well below its recent highs.
For investors looking for growth, value, and global exposure to a major healthcare trend, ResMed shares might just be the better pick right now.
