CTS (NYSE:CTS – Get Free Report) and OSI Systems (NASDAQ:OSIS – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Institutional & Insider Ownership
96.9% of CTS shares are owned by institutional investors. Comparatively, 89.2% of OSI Systems shares are owned by institutional investors. 1.6% of CTS shares are owned by company insiders. Comparatively, 4.3% of OSI Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
CTS has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, OSI Systems has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CTS | $541.32 million | 3.05 | $58.11 million | $2.19 | 25.94 |
| OSI Systems | $1.71 billion | 2.55 | $149.64 million | $8.83 | 30.01 |
OSI Systems has higher revenue and earnings than CTS. CTS is trading at a lower price-to-earnings ratio than OSI Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for CTS and OSI Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CTS | 0 | 1 | 0 | 0 | 2.00 |
| OSI Systems | 0 | 1 | 5 | 1 | 3.00 |
OSI Systems has a consensus target price of $282.00, suggesting a potential upside of 6.42%. Given OSI Systems’ stronger consensus rating and higher probable upside, analysts clearly believe OSI Systems is more favorable than CTS.
Profitability
This table compares CTS and OSI Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CTS | 12.07% | 12.14% | 8.56% |
| OSI Systems | 8.52% | 18.58% | 7.36% |
Summary
OSI Systems beats CTS on 11 of the 15 factors compared between the two stocks.
About CTS
CTS Corporation manufactures and sells sensors, actuators, and connectivity components in North America, Europe, and Asia. The company provides encoders, rotary position sensors, slide potentiometers, industrial and commercial rotary potentiometers. It also provides non-contacting, and contacting pedals; and eBrake pedals. In addition, the company offers flow meters, hydrophones, non-destructive testing, sonar, ultrasonic imaging, piezoelectric materials, piezoelectric sense products, and bulk products. Further, it provides eMobility, chassis, current sensors, clutch, brake, position sensors, stroke sensor, seating, speed, throttle, transmission, turbo, temperature sensors, and technical related products. Additionally, the company offers DIP, rotary selector, tactile, rotary DIP, and toggle switches, as well as provides transducer related products. Furthermore, it provides EMI, RFI, and RFI products; specialty and resistors; and frequency control products. The company sells and markets its products through its sales engineers, independent manufacturer representatives, and distributors. CTS Corporation was founded in 1896 and is based in Lisle, Illinois.
About OSI Systems
OSI Systems, Inc. designs and manufactures electronic systems and components. It operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The Security segment offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation monitoring, explosive and narcotics trace detection systems, and optical inspection systems under the Rapiscan name. It also provides site design, installation, training, and technical support services; and turnkey security screening solutions under the S2 name. The Healthcare segment offers patient monitoring, cardiology and remote monitoring, and connected care systems and accessories under the Spacelabs name for use in critical care, emergency, and perioperative areas within hospitals, physicians' offices, medical clinics, and ambulatory surgery centers. The Optoelectronics and Manufacturing segment provides optoelectronic devices under the OSI Optoelectronics, OSI LaserDiode, OSI Laserscan, and Advanced Photonix names for the aerospace and defense, avionics, medical imaging and diagnostics, biochemistry analysis, pharmaceutical, nanotechnology, telecommunications, construction, and homeland security markets. It also offers electronics manufacturing services to original equipment manufacturers and end users for medical, automotive, defense, aerospace, industrial, and consumer applications under the OSI Electronics, APlus Products, Altaflex, and PFC Flexible Circuits names; LCD displays for medical, industrial, and consumer electronics applications; and flex circuits for OEM customers. This segment offers laser-based remote sensing devices to detect and classify vehicles in toll and traffic management systems under the OSI Laserscan and Autosense names; and solid-state laser products for aerospace, defense, telecommunication, and medical applications under the OSI LaserDiode name. The company was incorporated in 1987 and is headquartered in Hawthorne, California.
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