Luna Innovations vs ResMed Which Is Superior?

Luna Innovations and ResMed are two companies in the healthcare industry that have been attracting the attention of investors. Luna Innovations, a research and technology company, specializes in optical technology and fiber optic sensing systems. On the other hand, ResMed is a global leader in sleep apnea and respiratory care products. Both companies have shown strong performance in recent years, with ResMed experiencing steady growth and Luna Innovations expanding its product offerings. This comparison will delve into the financials, market performance, and growth potential of both stocks.

Luna Innovations or ResMed?

When comparing Luna Innovations and ResMed, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Luna Innovations and ResMed.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Luna Innovations has a dividend yield of -%, while ResMed has a dividend yield of 0.84%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Luna Innovations reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, ResMed reports a 5-year dividend growth of 5.02% year and a payout ratio of 26.02%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Luna Innovations P/E ratio at -54.69 and ResMed's P/E ratio at 31.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Luna Innovations P/B ratio is 0.66 while ResMed's P/B ratio is 6.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Luna Innovations has seen a 5-year revenue growth of 0.00%, while ResMed's is 0.76%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Luna Innovations 's ROE at -1.20% and ResMed's ROE at 23.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.76 for Luna Innovations and $239.41 for ResMed. Over the past year, Luna Innovations 's prices ranged from $1.43 to $7.92, with a yearly change of 453.85%. ResMed's prices fluctuated between $162.18 and $260.49, with a yearly change of 60.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.