ResMed Inc. (RMD) vs Visa Inc. (V): Which Is the Better Buy in 2026?
As of 2026-06-19, RMD is undervalued at $189, with a DCF intrinsic value of $253 and a margin of safety of 25%. V is fairly valued at $327, with an intrinsic value of $304 and a margin of safety of -8%. Of the two, RMD has the wider margin of safety.
Rewards
- ★ResMed Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 62.2% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★ResMed Inc. scores 96/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
- ★Visa Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 97.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Visa Inc. scores 99/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
Risks
- ⚠FCF yield of 5.3% suggests reasonable valuation assuming continued moderate growth.
- ⚠5 insider sales totaling $3.8M with no purchases in the past 3 months — insiders are reducing their exposure.
- ⚠Insiders have sold $14.2M worth of stock in the past 3 months — significant insider liquidation.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $189?
The market implies +5.7% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +6.5%, reflecting heavy growth investment expected to generate future returns.
What growth rate is the market pricing in at $327?
The market implies +13.9% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +13.4%, reflecting heavy growth investment.
Economic Moat Score
Learn more →Wide moat with strength across all dimensions. Margin Stability is the standout factor.
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
Forensic Accounting
Learn more →M-Score Trend
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pessimistic — investigate whether fears are temporary or structural"
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: RMD vs V
Is ResMed Inc. or Visa Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, RMD trades at a 25.4% margin of safety (intrinsic value $253 vs. price $189), compared to V's -7.6% margin of safety (intrinsic $304 vs. $327).
Which stock has a wider economic moat, ResMed Inc. or Visa Inc.?▼
V scores 99/100 (Wide moat), while RMD scores 96/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Which company has better free cash flow, ResMed Inc. or Visa Inc.?▼
ResMed Inc. (RMD) generates a 5.3% free cash flow yield, compared to Visa Inc.'s 3.3%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.
Which stock has higher return on invested capital, ResMed Inc. or Visa Inc.?▼
V earns 38.4% ROIC versus RMD's 21.1%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.
Which dividend is safer, ResMed Inc.'s or Visa Inc.'s?▼
V's dividend earns a safety score of 94/100 (Very Safe), compared to RMD's 94/100 (Very Safe). V has raised its dividend for 3 consecutive years.