LLY vs RMD: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: RMD is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. LLY and RMD share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined LLY and RMD exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Eli Lilly (LLY) is one of the world's largest pharmaceutical companies, currently defined by its leadership in the GLP-1 class of medicines for diabetes and obesity. Its tirzepatide molecule is sold as Mounjaro for type 2 diabetes and as Zepbound for chronic weight management, and these products have driven explosive revenue growth amid surging demand for metabolic treatments. Beyond GLP-1s, Lilly has a deep and diversified pipeline and franchises across diabetes, oncology, immunology, and neuroscience, including a closely watched effort in Alzheimer's disease (donanemab, marketed as Kisunla). The company invests heavily in research and in expanding manufacturing capacity to meet incretin demand. Eli Lilly was founded in 1876 and is headquartered in Indianapolis, Indiana. It has become one of the most valuable healthcare companies in the world, with the obesity and diabetes opportunity central to its growth story, balanced by a premium valuation and the eventual prospect of competition and patent expirations.

Full LLY guide

ResMed sells the equipment and software used to treat sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions outside the hospital. The hardware side splits into flow generators (the AirSense and AirCurve device families, plus the Astral and Stellar life support ventilators) and the masks, cushions, tubing and filters patients replace on a rolling schedule. In fiscal 2026, the year ended June 30, 2026, Americas devices produced ~$1.77 billion and Americas masks and other ~$1.51 billion, while the rest of the world contributed ~$1.12 billion in devices and ~$572 million in masks. A third line, Residential Care Software, brought in ~$676 million from Brightree, MEDIFOX DAN and MatrixCare, the back office systems that home medical equipment dealers, out of hospital care providers and skilled nursing operators use for billing, resupply and scheduling. Roughly 11,370 employees support ~35 million cloud connected devices and ~37 million patients registered in AirView, the remote monitoring platform. Manufacturing is concentrated in Singapore, Sydney and Tijuana. The company is incorporated in Delaware, reports in US dollars, lists on the NYSE, and also trades in Australia as CHESS Depositary Interests.

Full RMD guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• LLY drivers: GLP-1 obesity and diabetes leadership; Manufacturing scale-up.
• RMD drivers: Resupply, not new device placements, carries the growth; The Astral recall is a sized, dated hole rather than an open ended one.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: LLY trades at a premium valuation, so any disappointment in obesity-drug growth, pricing, or supply can compress the multiple sharply. For RMD, philips is the single largest competitive variable.

Pick LLY if you believe its drivers more; RMD if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the LLY and RMD guides.

LLY. Eli Lilly trades at a premium pharma multiple that prices in continued rapid growth from the obesity and diabetes franchise plus pipeline optionality. The valuation debate centers on how large, durable, and profitable the incretin market proves to be and how competition (chiefly Novo Nordisk and emerging oral incretins) shapes pricing and share. Figures are approximate and should be verified against the latest filings before drawing conclusions.

RMD. Fiscal 2027 guidance calls for revenue of $5.75 billion to $5.85 billion with core constant currency growth of 5% to 7%, and non-GAAP EPS of $12.00 to $12.25, up 12% to 14%. Both figures absorb the ~$75 million Astral headwind and the MatrixCare divestiture, so the underlying growth rate is higher than the headline. At ~19x that guidance ResMed prices closer to a mature medtech than to the ~30x it commanded before the GLP-1 debate began, which is the whole valuation argument in one number.

Headline figures (approximate, early 2026): LLY shows revenue (ttm) ~$45 to 55 billion and growing fast (verify), operating margin ~30%+ (verify), gross margin ~80% (typical for branded pharma), p/e (ttm) ~40x to 60x (premium; verify); RMD shows revenue (fiscal 2026, trailing twelve months) ~$5.65 billion for fiscal 2026, the twelve months ended June 30, 2026, up ~10% reported and ~8% in constant currency from ~$5.15 billion in fiscal 2025, ~$4.69 billion in fiscal 2024 and ~$4.22 billion in fiscal 2023. Fourth quarter revenue was ~$1.46 billion, a record, up 9% reported and 8% in constant currency, though slightly below the ~$1.47 billion consensus., earnings and margins GAAP net income of ~$1.52 billion and diluted EPS of $10.43, up ~10%; non-GAAP net income ~$1.63 billion and non-GAAP diluted EPS $11.17, up 17%. GAAP gross margin 61.1% (up 170 basis points) and non-GAAP 62.4% (up 240 basis points). GAAP operating margin 33.4%; non-GAAP 36.1%. Research and development ran ~$378 million and SG&A ~$1.12 billion. Fourth quarter GAAP EPS of $2.64 grew only 2% because of the $42 million Astral provision, while non-GAAP EPS of $2.95 rose 16%., revenue mix (the line a screener misses) Fiscal 2026 devices totalled ~$2.89 billion (~$1.77 billion Americas, ~$1.12 billion rest of world), masks and other consumables ~$2.09 billion (~$1.51 billion Americas, ~$572 million rest of world), and Residential Care Software ~$676 million. Sleep and Breathing Health was ~$4.98 billion of the total. Masks grew 10% in the Americas and 12% internationally in the fourth quarter on a constant currency basis, against ~4% constant currency growth for software across the year., cash flow and balance sheet Operating cash flow of ~$1.81 billion in fiscal 2026 (up ~3%) and free cash flow of ~$1.65 billion (down ~1%). Cash and equivalents of ~$1.47 billion at June 30, 2026 against ~$659 million of total debt ($260 million short term, $399 million long term), for a net cash position and a debt to equity ratio near 0.13. Assets held for sale of ~$457 million reflect the pending MatrixCare disposal. Return on equity ran ~24% and return on invested capital ~26%..

LLY and RMD are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined LLY and RMD exposure against your real portfolio. It is not an investment adviser.