Analyzing Vontier (NYSE:VNT) and OSI Systems (NASDAQ:OSIS)

OSI Systems (NASDAQ:OSIS) and Vontier (NYSE:VNT) are both mid-cap technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Risk and Volatility

OSI Systems has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Vontier has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Earnings & Valuation

This table compares OSI Systems and Vontier”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OSI Systems	$1.79 billion	1.75	$154.71 million	$9.00	21.80
Vontier	$3.08 billion	1.46	$406.10 million	$2.41	13.81

Vontier has higher revenue and earnings than OSI Systems. Vontier 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 Recommendations

This is a breakdown of current recommendations and price targets for OSI Systems and Vontier, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OSI Systems	0	2	5	0	2.71
Vontier	1	3	4	0	2.38

OSI Systems currently has a consensus price target of $276.71, indicating a potential upside of 41.03%. Vontier has a consensus price target of $41.00, indicating a potential upside of 23.19%. Given OSI Systems’ stronger consensus rating and higher possible upside, research analysts clearly believe OSI Systems is more favorable than Vontier.

Institutional and Insider Ownership

89.2% of OSI Systems shares are owned by institutional investors. Comparatively, 95.8% of Vontier shares are owned by institutional investors. 4.3% of OSI Systems shares are owned by insiders. Comparatively, 1.1% of Vontier shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares OSI Systems and Vontier’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OSI Systems	8.66%	20.33%	7.24%
Vontier	11.34%	38.57%	11.30%

Summary

OSI Systems beats Vontier on 8 of the 14 factors compared between the two stocks.

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.

About Vontier

Vontier Corporation provides mobility ecosystem solutions worldwide. The company operates through Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions segments. The Mobility Technologies segment provides digitally equipment solutions for mobility ecosystem, such as point-of-sale and payment systems, workflow automation, telematics, data analytics, software platform, and integrated solutions for alternative fuel dispensing. The Repair Solutions segment manufactures and distributes vehicle repair tools, toolboxes, automotive diagnostic equipment and software through mobile franchise network. The Environmental and Fueling Solutions segment offers environmental, fueling hardware, software, and aftermarket solutions for fueling infrastructures. It also offers a range of solutions, including environmental sensors; fueling equipment; field payment hardware; point-of sale, workflow, and monitoring software; vehicle tracking and fleet management; software solutions for EV charging; and vehicle mechanics, and technicians equipment. The company markets its products and services to retail and commercial fueling, convenience store, and car wash operators; commercial vehicle repair businesses, fleet owners/operators and electric vehicle charging network operators, as well as direct sales personnel and independent distributors. It serves customers in North America, the Asia Pacific, Europe, and Latin America. Vontier Corporation was incorporated in 2019 and is headquartered in Raleigh, North Carolina.