What was the Philips Respironics recall and why was it significant?

In June 2021, Philips issued a massive voluntary recall of approximately 5.5 million CPAP, BiPAP, and ventilator devices worldwide — the Philips Respironics product line. The recall was triggered by concerns that the polyester-based polyurethane (PE-PUR) foam used for sound abatement could degrade and potentially emit particles and gases that could be inhaled or ingested. The recall was one of the largest in medical device history, and Philips was unable to replace devices fast enough, creating a severe supply shortage that ResMed largely filled.

What is the potential impact of GLP-1 drugs on sleep apnea device demand?

Obesity is the primary risk factor for obstructive sleep apnea — excess weight creates fatty tissue around the neck and throat that obstructs the airway during sleep. GLP-1 drugs (Ozempic, Wegovy) produce significant weight loss, and clinical studies have shown that weight loss can significantly reduce or even eliminate sleep apnea in many patients. If GLP-1 drugs achieve widespread adoption for obesity, the prevalence of obstructive sleep apnea could potentially decline — reducing long-term CPAP therapy demand. This is a potential structural headwind that investors and analysts actively discuss for ResMed.

What does Philips sell beyond sleep devices?

Beyond sleep and respiratory care (Respironics), Philips operates in: (1) Diagnosis & Treatment — MRI scanners, CT scanners, ultrasound systems, cardiac catheterization lab equipment, and image-guided therapy systems; (2) Connected Care — patient monitoring systems for hospitals (ICU, step-down units), telehealth solutions, and enterprise informatics; and (3) Personal Health — consumer health products (electric toothbrushes, epilators, air purifiers). The imaging and monitoring segments have been less affected by the recall and represent significant revenue and profit.

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RMD

ResMed Inc. · Healthcare - Sleep Apnea & Respiratory Devices

$188.63

-9.22% this month

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PHG

Koninklijke Philips N.V. · Healthcare - Diversified Medical Technology

$26.78

+2.80% this month

Scoreboard verdict

Across AI score, momentum, valuation, upside, operating margin

RMD

2

PHG

2

MIXED SETUP

Comparison scoreboard

MIXED SETUP

AI Score

RMD ✓50.1

PHG 40.4

1Y Return

RMD -24.58%

PHG ✓+26.13%

Fwd P/E

RMD 16.04

PHG ✓13.13

Target Up.

RMD ✓+38.93%

PHG +25.24%

Op. Margin

RMD 35.33%

PHG N/A

Metrics last refreshed: 6/20/2026

Quick take

RMD vs PHG Stock Comparison: AI Score, Valuation, Performance and Upside

RMD (ResMed) is the global sleep apnea and respiratory care device leader with connected cloud capabilities, dramatically benefiting from the Philips Respironics device recall that transferred millions of patients to ResMed devices. PHG (Philips) is a diversified healthcare technology company managing the fallout from the Respironics recall while maintaining leadership in medical imaging and hospital monitoring.

RMD vs PHG in sleep apnea is market-share winner (ResMed captures Philips recall patients) versus diversified healthcare conglomerate managing recall crisis (Philips rebuilds Respironics while leveraging imaging and monitoring businesses) — one of the most consequential medical device market share shifts in recent history.

Live analysis · updated 6/20/2026

RMD and PHG are closely matched — they split the tracked metrics evenly. PHG leads on both 1-year return (+26.13%) and forward P/E (13.13x vs 16.04x for RMD), a relatively favorable combination of momentum and valuation. Analyst consensus implies meaningfully more upside for RMD (+38.93%) than for PHG (+25.24%).

Normalized 1Y performance

RMD

PHG

Recent returns

RMD

PHG

Analyst price targets & sentiment

RMD

Price target range

analyst mean$270.60
current price$188.63

+38.9% upside to analyst mean

PHG · 5 analysts

Price target range

analyst low$29.20
analyst high$41.00
analyst mean$33.54
current price$26.78

+25.2% upside to analyst mean

Who should consider this stock?

RMD may suit investors who:

→Want the global leader in sleep apnea devices with connected cloud capabilities, sustained market share gains from the Philips recall, and growing SaaS revenue from care management platforms
→Value ResMed's near-monopoly market share during Philips's supply constraints as creating patient loyalty and data network effects that may persist beyond the recall period
→See home respiratory care and sleep apnea as structural growth markets as diagnosis rates improve and the obesity-sleep apnea connection drives treatment demand

PHG may suit investors who:

→Want diversified healthcare technology exposure through Philips's medical imaging, patient monitoring, and connected care businesses at a valuation reflecting recall disruption
→Value Philips's medical imaging (MRI, CT, ultrasound) as a high-quality, recurring-service business that is separate from the Respironics recall impact and remains a strong franchise
→See Philips's recall resolution and litigation settlement as a clearing event that could unlock significant valuation recovery for the broader healthcare technology portfolio

Performance & AI score

Metric	RMD	PHG
AI score	50.1	40.4
AI rank	#464	#1050
Latest close	$188.63	$26.78
1M return	-9.22%	+2.80%
6M return	-23.30%	+6.48%
1Y return	-24.58%	+26.13%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	RMD	PHG
1Y ago	$7.52K (-24.8%) started 2025-06-18	$13.11K (+31.1%) started 2025-06-18
5Y ago	$8.44K (-15.6%) started 2021-06-21	$6.67K (-33.3%) started 2021-06-18
10Y ago	$38.94K (+289.4%) started 2016-06-20	$16.07K (+60.7%) started 2016-06-20

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Metric	RMD	PHG
Market cap	$28.25B	$26.03B
Trailing P/E	18.80	23.09
Forward P/E	16.04	13.13
Price/Sales	N/A	1.48
EV/Revenue	4.95	1.76
Analyst target	$270.60	$33.54
Target upside	+38.93%	+25.24%

Growth, profitability & risk

Metric	RMD	PHG
Revenue growth	10.80%	-4.70%
Earnings growth	10.50%	97.20%
EPS growth	+10.50%	+97.20%
FCF margin	+26.12%	+8.61%
Operating margin	35.33%	N/A
Profit margin	27.44%	5.50%
ROIC proxy	25.25%	8.36%
Return on equity	25.25%	8.36%
Dividend yield	1.23%	3.78%
Beta	0.78	0.93
Debt/equity	12.99	70.91
Current ratio	3.01	1.32
Quick ratio	2.00	0.79

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

RMD max drawdown37.76%

PHG max drawdown22.27%

RMD max wkly drop12.10%

PHG max wkly drop9.59%

5Y risk snapshot

RMD max drawdown53.99%

PHG max drawdown76.06%

RMD max wkly drop20.45%

PHG max wkly drop18.61%

10Y risk snapshot

RMD max drawdown53.99%

PHG max drawdown79.61%

RMD max wkly drop23.64%

PHG max wkly drop19.10%

Performance metrics by period

Period	Metric	RMD	PHG
1Y	Growth	-24.81%	+26.13%
	CAGR	-24.84%	+26.15%
	Sharpe ratio	-1.23	0.78
	Max drawdown	37.76%	22.27%
	Max daily drop	6.32%	5.68%
	Max wkly drop	12.10%	9.59%
5Y	Growth	-18.50%	-41.04%
	CAGR	-4.01%	-10.03%
	Sharpe ratio	-0.12	-0.22
	Max drawdown	53.99%	76.06%
	Max daily drop	18.50%	15.95%
	Max wkly drop	20.45%	18.61%
10Y	Growth	+249.30%	+28.10%
	CAGR	+13.33%	+2.51%
	Sharpe ratio	0.41	0.10
	Max drawdown	53.99%	79.61%
	Max daily drop	19.39%	15.95%
	Max wkly drop	23.64%	19.10%

Business comparison

Category	RMD	PHG
Company	ResMed Inc.	Koninklijke Philips N.V.
Sector	Healthcare	Healthcare - Diversified Medical Technology
Industry	N/A	N/A
Core business	ResMed is the global leader in cloud-connected sleep apnea devices — including CPAP (Continuous Positive Airway Pressure) machines, masks, and accessories — plus software-as-a-service (SaaS) solutions for remote patient monitoring (myAir app), care coordination, and out-of-hospital respiratory care management.	Philips is a Dutch healthcare technology conglomerate providing medical imaging (MRI, CT, ultrasound), image-guided therapy devices, patient monitoring, connected care software, and sleep and respiratory care (CPAP/BiPAP) — undergoing a major restructuring and recovery from the Philips Respironics device recall.
Investor focus	Investors track ResMed's device revenue (CPAP machines and masks), SaaS subscription revenue from care management platforms (Brightree, MatrixCare), gross margin, and the enormous patient opportunity created by Philips's device recall.	Investors track Philips's sleep and respiratory care recovery (Philips Respironics), order intake for imaging systems, margin recovery progress, legal settlement progress for the Respironics recall, and the Philips transformation plan execution.

RMD strengths

→Global #1 in sleep apnea devices with the most patient-connected cloud platform — millions of ResMed CPAP users transmit sleep data nightly through myAir, enabling remote compliance monitoring
→Philips Respironics recall (over 5.5 million devices recalled for foam degradation risk) dramatically shifted market share to ResMed — the primary beneficiary of the largest medical device recall in sleep apnea history
→SaaS business (Brightree, MatrixCare) for home health care coordination provides recurring software revenue independent of device sales cycles

PHG strengths

→Diversified healthcare technology portfolio spanning imaging, monitoring, and connected care provides multiple revenue streams across the hospital and homecare settings
→Medical imaging (MRI, CT, ultrasound) is a high-margin, recurring-service business — hospitals rely on Philips imaging systems and require ongoing maintenance, service, and upgrade contracts
→European healthcare market strength through deep relationships with hospital networks across the Netherlands, Germany, and broader European market

Risks to watch — RMD

→ResMed's device revenue is beginning to normalize as the Philips supply gap fills and demand catch-up moderates
→GLP-1 weight loss medications (Ozempic, Wegovy) may reduce the prevalence of obesity-related sleep apnea — a potential long-term headwind if weight loss therapy reduces the patient population needing CPAP
→Healthcare at-home and care coordination SaaS is increasingly competitive — Brightree and MatrixCare compete with other home health software vendors

Risks to watch — PHG

→Philips Respironics recall has resulted in billions of euros in recall-related charges, ongoing litigation, and reputational damage in the sleep apnea market where it was previously the leader
→The sleep device market share lost to ResMed during the recall period has been very difficult to recover — many patients switched to ResMed and have not returned to Philips
→Philips ADR (PHG) trades on OTC markets for U.S. investors, with the primary listing on Euronext Amsterdam — U.S. investors face EUR/USD currency exposure

Frequently asked questions

CPAP (Continuous Positive Airway Pressure) therapy treats sleep apnea — a condition where breathing repeatedly stops and starts during sleep — by delivering a continuous stream of pressurized air through a mask to keep the airway open. Sleep apnea is estimated to affect 30-40 million Americans and hundreds of millions globally, with a large proportion undiagnosed. CPAP machines, masks, and replacement supplies represent a large, recurring-revenue market driven by patient compliance with ongoing therapy.

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