Should I buy Fisher & Paykel or ResMed shares?

Let's see which of these two names could be best buys.

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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.

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.

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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