OSI Systems (NASDAQ: OSIS) and Teledyne Technologies (NYSE:TDY) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitabiliy, dividends and earnings.

Valuation & Earnings

This table compares OSI Systems and Teledyne Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
OSI Systems $930.02 million 1.47 $117.25 million $1.30 56.32
Teledyne Technologies $2.19 billion 2.06 $372.10 million $5.09 25.17

Teledyne Technologies has higher revenue and earnings than OSI Systems. Teledyne 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 Teledyne Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OSI Systems 2.73% 9.04% 4.17%
Teledyne Technologies 8.31% 13.28% 6.83%

Insider and Institutional Ownership

96.2% of OSI Systems shares are held by institutional investors. Comparatively, 83.9% of Teledyne Technologies shares are held by institutional investors. 7.5% of OSI Systems shares are held by company insiders. Comparatively, 3.3% of Teledyne Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

OSI Systems has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Teledyne Technologies has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for OSI Systems and Teledyne Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OSI Systems 0 0 6 0 3.00
Teledyne Technologies 0 2 0 0 2.00

OSI Systems currently has a consensus target price of $87.20, suggesting a potential upside of 19.11%. Teledyne Technologies has a consensus target price of $123.50, suggesting a potential downside of 3.61%. Given OSI Systems’ stronger consensus rating and higher possible upside, research analysts plainly believe OSI Systems is more favorable than Teledyne Technologies.

Summary

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

OSI Systems Company Profile

OSI Systems, Inc., through its subsidiaries, is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. The Company sells its products and provides related services in diversified markets, including homeland security, healthcare, defense and aerospace. The Company operates in three segments, which include Security, which provides security and inspection systems, turnkey security screening solutions and related services; Healthcare, which provides patient monitoring, diagnostic cardiology, anesthesia delivery and ventilation systems and defibrillators, and Optoelectronics and Manufacturing, which provides electronic components and electronic manufacturing services for the Security and Healthcare divisions, as well as to external original equipment manufacturer (OEM) customers and end users for applications in the defense, aerospace, medical and industrial markets, among others.

Teledyne Technologies Company Profile

Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets. The Company’s segments include Instrumentation, Digital Imaging, Aerospace and Defense Electronics, and Engineered Systems. Instrumentation segment provides monitoring and control instruments for marine, environmental, industrial and other applications, as well as electronic test and measurement equipment. Digital Imaging segment includes sensors, cameras and systems, within the visible, infrared, ultraviolet and X-ray spectra. Aerospace and Defense Electronics segment provides electronic components and subsystems and communications products, including defense electronics. Engineered Systems segment provides systems engineering and integration and technology development, as well as manufacturing solutions.

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