Qantas Airways Ltd (QAN) and ResMed CDI (RMD) share price movements in 2026 offer a fascinating glimpse into the dynamics of the Australian aviation and healthcare industries. While QAN's shares have experienced a 4.0% decline since 2025, RMD's shares have surged 10.9% above their 52-week low, presenting a contrasting picture of these two prominent Australian companies.
The Qantas Story: A Legacy Carrier in Turmoil
Qantas, founded in 1921, stands as Australia's aviation giant. With a formidable fleet size, international flight network, and diverse service offerings, it's easy to understand why it's a household name. However, the airline's reputation among Australian consumers has taken a hit in recent years. Roy Morgan surveys consistently rank Qantas as one of the most distrusted brands in the country, raising questions about customer satisfaction and loyalty.
Despite this challenge, Qantas has demonstrated resilience. The airline has continued to grow revenue and profit post-pandemic, leveraging its market dominance and diverse service portfolio. This includes domestic and international flights under the Qantas and Jetstar brands, freight services, and the management of its Frequent Flyer loyalty program.
ResMed's Rise: A Cloud-Connected Healthcare Leader
In contrast, ResMed, founded in 1989 by Peter Farrell, has emerged as a leading player in the medical equipment sector. Headquartered in San Diego, California, ResMed specializes in treating obstructive sleep apnea (OSA) with cloud-connectable continuous positive airway pressure (CPAP) machines. Its global reach, spanning over 140 countries with 10,000 employees, showcases its significant impact on healthcare.
ResMed's two main business units, Sleep and Respiratory Care, and Software as a Service (SaaS), contribute to its success. The Sleep unit offers advanced CPAP machines and ventilation solutions, while the SaaS unit provides software for durable medical equipment (DME/HME) management. ResMed's cloud-connected devices and digital health network empower it to generate valuable insights, improve patient outcomes, and reduce healthcare costs.
Share Price Valuation: A Tale of Two Metrics
The share price valuation of QAN and RMD presents an intriguing comparison. QAN's price-sales ratio of 0.69x is significantly lower than its 5-year average of 0.88x, suggesting a potential undervaluation. This could be attributed to a combination of factors, including increased sales growth over the last three years. However, it's crucial to remember that a single valuation metric is rarely sufficient for investment decisions.
On the other hand, RMD's price-sales ratio of 4.11x is below its 5-year average of 8.70x, indicating a potential overvaluation. This discrepancy highlights the importance of employing multiple valuation methods, such as Discounted Cash Flow (DCF) and Dividend Discount Models (DDM), as offered by Rask Media's online investing courses.
In conclusion, the contrasting share price movements of QAN and RMD in 2026 reflect the unique challenges and opportunities within their respective industries. While Qantas grapples with consumer distrust, ResMed thrives as a cloud-connected healthcare leader. Investors must carefully analyze multiple valuation metrics and industry trends to make informed decisions about these two Australian powerhouses.
