OSI Systems (NASDAQ:OSIS – Get Free Report) and LightPath Technologies (NASDAQ:LPTH – 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 analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Insider and Institutional Ownership
89.2% of OSI Systems shares are held by institutional investors. Comparatively, 56.3% of LightPath Technologies shares are held by institutional investors. 5.6% of OSI Systems shares are held by company insiders. Comparatively, 5.2% of LightPath Technologies shares are held 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.
Risk and Volatility
OSI Systems has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, LightPath Technologies has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OSI Systems | $1.54 billion | 1.60 | $128.15 million | $7.27 | 19.92 |
| LightPath Technologies | $31.73 million | 2.01 | -$8.01 million | ($0.18) | -9.11 |
OSI Systems has higher revenue and earnings than LightPath Technologies. LightPath Technologies is trading at a lower price-to-earnings ratio than OSI Systems, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares OSI Systems and LightPath Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OSI Systems | 8.33% | 17.80% | 7.97% |
| LightPath Technologies | -25.24% | -24.55% | -15.46% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for OSI Systems and LightPath Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OSI Systems | 0 | 0 | 5 | 0 | 3.00 |
| LightPath Technologies | 0 | 0 | 2 | 0 | 3.00 |
OSI Systems currently has a consensus price target of $172.60, indicating a potential upside of 19.16%. LightPath Technologies has a consensus price target of $3.00, indicating a potential upside of 82.93%. Given LightPath Technologies’ higher probable upside, analysts clearly believe LightPath Technologies is more favorable than OSI Systems.
Summary
OSI Systems beats LightPath Technologies on 10 of the 13 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 LightPath Technologies
LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. The company offers precision molded glass aspheric optics, molded and diamond-turned infrared aspheric lenses, and other optical components used to produce products that manipulate light; and infrared products, including catalog and custom infrared optics. Its products are used in defense products, medical devices, laser aided industrial tools, automotive safety applications, barcode scanners, optical data storage, hybrid fiber coax datacom, telecommunications, machine vision and sensors, and other sectors. The company sells its products directly to customers in Europe and Asia. LightPath Technologies, Inc. was founded in 1985 and is headquartered in Orlando, Florida.
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