Head-To-Head Review: Avnet (NYSE:AVT) vs. OSI Systems (OSIS)
Avnet (NYSE: AVT) and OSI Systems (NASDAQ:OSIS) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitabiliy, analyst recommendations, valuation, earnings, risk and dividends.
This is a summary of current ratings and price targets for Avnet and OSI Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avnet currently has a consensus price target of $41.14, indicating a potential upside of 11.80%. OSI Systems has a consensus price target of $87.20, indicating a potential upside of 8.19%. Given Avnet’s higher possible upside, analysts clearly believe Avnet is more favorable than OSI Systems.
Risk and Volatility
Avnet has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, OSI Systems has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.
Avnet pays an annual dividend of $0.72 per share and has a dividend yield of 2.0%. OSI Systems does not pay a dividend. Avnet pays out 17.3% of its earnings in the form of a dividend. Avnet has increased its dividend for 3 consecutive years.
This table compares Avnet and OSI Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
98.7% of Avnet shares are owned by institutional investors. 1.5% of Avnet shares are owned by company insiders. Comparatively, 7.5% of OSI Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Avnet and OSI Systems’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Avnet||$26.28 billion||0.18||$990.42 million||$4.17||8.82|
|OSI Systems||$930.02 million||1.62||$117.25 million||$1.30||62.00|
Avnet has higher revenue and earnings than OSI Systems. Avnet is trading at a lower price-to-earnings ratio than OSI Systems, indicating that it is currently the more affordable of the two stocks.
Avnet beats OSI Systems on 11 of the 18 factors compared between the two stocks.
Avnet, Inc. is a distributor of electronic components, enterprise computer, networking and storage products and software, and embedded subsystems. The Company operates through Electronics Marketing (EM) segment. The EM segment markets and sells semiconductors; interconnect, passive and electromechanical devices (IP&E), and embedded products to a customer base serving various end markets. The Company creates a link in the technology supply chain that connects electronic component and computer product manufacturers and software developers with a customer base of original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), systems integrators (SIs), independent software vendors (ISVs) and value-added resellers (VARs). The Company distributes electronic components, computer products and software, as received from its suppliers or through a customized solution, and offers assembly and other services.
About OSI Systems
OSI Systems, Inc., through its subsidiaries, is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. The Company sells its products and provides related services in diversified markets, including homeland security, healthcare, defense and aerospace. The Company operates in three segments, which include Security, which provides security and inspection systems, turnkey security screening solutions and related services; Healthcare, which provides patient monitoring, diagnostic cardiology, anesthesia delivery and ventilation systems and defibrillators, and Optoelectronics and Manufacturing, which provides electronic components and electronic manufacturing services for the Security and Healthcare divisions, as well as to external original equipment manufacturer (OEM) customers and end users for applications in the defense, aerospace, medical and industrial markets, among others.
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