OSI Systems (NASDAQ:OSIS – Get Free Report) and Nortech Systems (NASDAQ:NSYS – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.
Valuation & Earnings
This table compares OSI Systems and Nortech Systems”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OSI Systems | $1.71 billion | 2.60 | $149.64 million | $8.83 | 30.57 |
| Nortech Systems | $128.13 million | 0.21 | -$1.29 million | ($0.95) | -10.16 |
Institutional & Insider Ownership
89.2% of OSI Systems shares are owned by institutional investors. Comparatively, 3.1% of Nortech Systems shares are owned by institutional investors. 4.3% of OSI Systems shares are owned by company insiders. Comparatively, 11.0% of Nortech Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
OSI Systems has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Nortech Systems has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500.
Profitability
This table compares OSI Systems and Nortech Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OSI Systems | 8.52% | 18.58% | 7.36% |
| Nortech Systems | -2.25% | -7.93% | -3.56% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for OSI Systems and Nortech Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OSI Systems | 0 | 1 | 5 | 1 | 3.00 |
| Nortech Systems | 1 | 0 | 0 | 0 | 1.00 |
OSI Systems currently has a consensus target price of $282.00, indicating a potential upside of 4.46%. Given OSI Systems’ stronger consensus rating and higher possible upside, equities research analysts clearly believe OSI Systems is more favorable than Nortech Systems.
Summary
OSI Systems beats Nortech Systems on 14 of the 15 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 Nortech Systems
Nortech Systems Incorporated provides design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies, and components in the United States, Mexico, and China. It offers a range of technical and manufacturing, and support services, including project management, designing, testing, prototyping, manufacturing, supply chain management, and post-market services. The company also provides manufacturing and engineering services for medical devices, printed circuit board assemblies, wire and cable assemblies, and higher-level electromechanical assemblies. In addition, it offers engineering and repair services. The company serves original equipment manufacturers in the medical, aerospace and defense, and industrial markets through business development teams and independent manufacturers' representatives. Nortech Systems Incorporated was founded in 1990 and is headquartered in Maple Grove, Minnesota.
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