Which is better, ALGN or RMD?

On the Buffett-Fit framework, ResMed Inc. (RMD) currently grades higher than ALGN — 72/100 (B grade) vs 56/100 (C). That said, "better" depends on which framework you trust — ALGN wins on none; RMD wins on Warren Buffett, Benjamin Graham, Philip Fisher, Peter Lynch, Joel Greenblatt, Charlie Munger, and Terry Smith. The full pillar breakdown is on this page.

Should I buy ALGN or RMD?

This page is an educational comparison, not investment advice. Both ALGN and RMD are graded against the same Buffett 5-pillar framework (moat, earnings durability, management quality, financial health, valuation) plus six other documented investor frameworks. Read the side-by-side breakdown to see which one matches the criteria you care about most — and always do your own research before making any investment decision.

Is ALGN better than RMD for value investing?

On the Buffett-style value-investing framework, RMD currently grades higher — 72/100 vs 56/100, a 16-point gap. The gap is driven by which pillars each stock passes; the table on this page shows moat, durability, management, financial health, and valuation side-by-side.

What's the difference between ALGN and RMD on Warren Buffett's framework?

Both stocks are evaluated on the same five pillars: economic moat (durable competitive advantage), earnings durability (consistent profitability), management quality (capital allocation), financial health (conservative balance sheet), and valuation (margin of safety). ALGN currently scores 56/100 (C grade); RMD scores 72/100 (B grade). The "Where each wins" section on this page breaks down which pillar each stock dominates.

Which has the stronger moat, ALGN or RMD?

Moat strength is one of the five pillars in the Buffett-Fit score on this page. ALGN and RMD are each scored on ROIC sustainability, gross-margin durability, and qualitative signals like brand strength, switching costs, network effects, and regulatory barriers. The pillar breakdown on this page shows the moat sub-score side-by-side so you can see which one has the more durable competitive advantage.

Which is more undervalued, ALGN or RMD?

Valuation is one of the five Buffett-Fit pillars on this page. Both stocks are scored on owner-earnings yield, price-to-intrinsic-value vs the underlying compounding rate, and the margin of safety relative to a conservative DCF. The valuation sub-score in the table below tells you which one currently trades at a more attractive price relative to its underlying business quality.

Are ALGN and RMD both Healthcare stocks?

Yes — both Align Technology, Inc. (ALGN) and ResMed Inc. (RMD) operate in the Healthcare sector. That makes this a direct sector-peer comparison, which is the apples-to-apples way to use the Buffett-Fit framework: the score weighs each stock against its sector's specific quality and valuation benchmarks (sector-relative bonus), so the cross-stock comparison isn't distorted by inter-sector base-rate differences.

Is this ALGN vs RMD comparison investment advice?

No. This page is an educational pattern-match against documented public frameworks (Buffett, Graham, Fisher, Lynch, Greenblatt, Munger, Smith), not personalised investment advice. The scores reflect how closely each stock matches each framework's documented criteria — they are not buy/hold/sell recommendations. Always do your own research and consult a licensed financial adviser for personalised advice.

Stock comparison

Align Technology

ResMed

Scored across Buffett, Graham, Lynch and Greenblatt - plus a side-by-side metric table covering valuation, quality, growth and balance sheet.

ALGN

Align Technology

Market cap

$11.68B

Sector

Healthcare

RMD

ResMed

Market cap

$30.31B

Sector

Healthcare

Overall winner

ResMed RMD

Wins on the combined sum of fit scores across all four strategies. Per-strategy breakdown below.

Fit scores by strategy

Strategy	ALGN	RMD	Winner
Warren Buffett	56C	72B	RMD
Benjamin Graham	66B	75B	RMD
Philip Fisher	40D	75B	RMD
Peter Lynch	18F	58C	RMD
Joel Greenblatt	36D	47D	RMD
Charlie Munger	42D	69B	RMD
Terry Smith	44D	73B	RMD

Side-by-side metrics

Metric	ALGN	RMD
Market cap	$11.68B	$30.31B
P/E (TTM)	26.1x	19.6x
EV/EBIT	16.7x	17.1x
ROIC (TTM)	9.72%	19.63%
Gross margin	67.68%	61.69%
Net margin	10.5%	27.44%
Revenue CAGR 5y	0.52%	12.64%
EPS CAGR 5y	-12.78%	30.73%
Debt / Equity	0.0x	0.1x
Dividend yield	0.0%	1.14%

Where each one wins

The metrics with the biggest gap between the two - sorted so the most decisive edges read first.

ALGN leads on

Debt / Equity0.0xvs 0.1x+85%
Gross margin67.68%vs 61.69%+9%

RMD leads on

EPS CAGR 5y30.73%vs -12.78%+142%
Dividend yield1.14%vs 0.0%+100%
Revenue CAGR 5y12.64%vs 0.52%+96%
Net margin27.44%vs 10.5%+62%

Educational tool. Fit scores are deterministic projections from public financials onto each investor's published criteria - not personal recommendations or advice.

Align Technology

ResMed

Fit scores by strategy

Side-by-side metrics

Where each one wins

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Key terms in this analysis