Head to Head Comparison: OSI Systems (OSIS) and The Competition

OSI Systems (NASDAQ:OSIS) is one of 377 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it contrast to its competitors? We will compare OSI Systems to similar businesses based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Institutional & Insider Ownership

89.2% of OSI Systems shares are owned by institutional investors. Comparatively, 43.2% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 4.3% of OSI Systems shares are owned by insiders. Comparatively, 16.4% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares OSI Systems and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OSI Systems	8.79%	21.57%	7.19%
OSI Systems Competitors	-158.14%	-25.87%	-6.85%

Risk and Volatility

OSI Systems has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, OSI Systems’ competitors have a beta of -0.24, suggesting that their average stock price is 124% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for OSI Systems and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OSI Systems	0	2	5	0	2.71
OSI Systems Competitors	2049	7614	10449	665	2.47

OSI Systems currently has a consensus target price of $276.71, indicating a potential upside of 40.92%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 41.19%. Given OSI Systems’ competitors higher possible upside, analysts clearly believe OSI Systems has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares OSI Systems and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
OSI Systems	$1.79 billion	$154.71 million	21.05
OSI Systems Competitors	$4.00 billion	$172.92 million	4.89

OSI Systems’ competitors have higher revenue and earnings than OSI Systems. OSI Systems is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

OSI Systems beats its competitors on 8 of the 13 factors compared.

OSI Systems Company Profile

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.