In the dynamic world of investing, few choices are more fascinating than comparing two completely different industries—mining vs. medical technology. On one side, you have Fortescue Metals Group (ASX: FMG), one of the world’s lowest-cost iron ore producers. On the other, ResMed Inc. (ASX: RMD), a global leader in sleep apnea devices and digital health. Both are giants in their respective sectors. But which is the smarter buy for your portfolio in FY25–26?

Let’s dive deep into their fundamentals, market dynamics, and future growth potential.

Fortescue Metals Group (ASX: FMG)

Sector: Mining & Resources
Focus: Iron ore, with emerging plans in green energy and critical minerals
Market Cap: ‪49.14 billion

FMG operates massive iron ore hubs across the Pilbara region in Western Australia. It ships approximately 170 million tonnes of iron ore per year, generating robust cash flows through its vertically integrated infrastructure—railways, ports, and shipping.

Key Financials (H1 FY25):

Revenue: $11.55 billion

Net Profit: $2.35 billion

EBITDA Margin: 48.4%

PE Ratio: 8.47

Dividend Yield (TTM): 8.70%

Recent Dividend per Share: $0.50

These numbers speak volumes. FMG remains incredibly profitable, with one of the highest dividend yields on the ASX. Investors looking for income and value are drawn to its consistent shareholder returns.

Growth Drivers:

1. Continued record shipments despite softening iron ore prices.
2. Ongoing investments in Iron Bridge and magnetite operations.
3. Diversification into green hydrogen, lithium, and copper.
4. “Real Zero by 2030” decarbonisation initiative, aligning with ESG trends.

The Risks:

FMG’s earnings are heavily dependent on iron ore prices, which are closely tied to Chinese demand—a notoriously cyclical and politically sensitive market. If prices drop or China scales back infrastructure, profits could fall quickly.

ResMed Inc. (ASX: RMD)

Sector: Healthcare & Medical Devices
Focus: Sleep apnea, respiratory care, and digital health solutions
Market Cap: ‪56.99 billion

ResMed designs and manufactures sleep-related devices and software. It dominates the obstructive sleep apnea (OSA) treatment market globally and is expanding into cloud-based health platforms, giving it a major edge in the rising digital health wave.

✅ Key Financials (Q3 FY25):

Revenue: $2.06 billion

Net Profit: $581.56 million

Operating Cash Flow: $913.72 million

PE Ratio: 28.4

Dividend Yield (TTM): 0.83%

Recent Dividend per Share: $0.08

ResMed is cash-rich, low-debt, and generates consistent profits. Its operating cash flow shows its efficiency, and its earnings are less cyclical than FMG’s—making it more resilient during economic downturns.

🌐 Growth Catalysts:

1. Booming demand for home-based care and respiratory health
2. Rise in wearables and diagnostics revealing more untreated OSA cases
3. Expansion of its AI-powered software (Dawn) and AirTouch N30i masks
4. Cost advantages from global manufacturing and tariff protections

The Risks:

ResMed trades at a higher valuation, with a PE of 28+, making it more vulnerable to any earnings miss or regulatory changes in the US health market. However, its wide moat and product leadership keep investor confidence high.

Which Is the Better Buy Right Now?

If You’re Seeking Value, Income, and Exposure to Commodities:

Fortescue (FMG) is hard to ignore. At a low PE and with an almost 9% dividend yield, it’s a magnet for income-seeking investors. Plus, if iron ore prices bounce back due to a Chinese stimulus or infrastructure boom, FMG could deliver 20–30% upside. Just be cautious of commodity cycles and external shocks (e.g., geopolitical risks, China’s slowing property market).

If You’re After Innovation, Resilience, and Long-Term Growth:

ResMed (RMD) stands out for its defensive characteristics, recurring revenue, and innovation. The global sleep apnea market is expanding, and its AI-driven healthcare tools provide unique scaling opportunities. While it doesn’t yield much, it offers capital growth and stability.

Final Thoughts & Recommendation

It really comes down to your investment style:

• FMG is for those who can handle short-term swings and want exposure to natural resources and high dividends. A good pick if you’re looking for value and tactical gains.
• RMD is the steady compounder—ideal if you want low-risk, consistent growth, and exposure to the future of digital health.

If we had to pick one for a balanced portfolio with long-term growth potential, ResMed edges out Fortescue—especially if you value quality over short-term yield.

Conclusion

Whether you believe in iron ore and infrastructure or data-driven healthtech and sleep solutions, both FMG and RMD offer compelling stories. FMG delivers income and potential rebounds, while RMD offers durability and innovation.

Choose based on your horizon, risk appetite, and the narrative you believe has stronger long-term legs. Either way, these ASX giants are worth keeping firmly on your watchlist in FY26.