Financial Analysis: InvenSense (NYSE:INVN) vs. OSI Systems (OSIS)
InvenSense (NYSE: INVN) and OSI Systems (NASDAQ:OSIS) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitabiliy, earnings, analyst recommendations, valuation, institutional ownership and risk.
This table compares InvenSense and OSI Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for InvenSense and OSI Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
InvenSense presently has a consensus price target of $11.33, suggesting a potential downside of 12.75%. OSI Systems has a consensus price target of $87.20, suggesting a potential upside of 9.55%. Given OSI Systems’ stronger consensus rating and higher probable upside, analysts plainly believe OSI Systems is more favorable than InvenSense.
Institutional & Insider Ownership
46.5% of InvenSense shares are held by institutional investors. 14.2% of InvenSense shares are held by company insiders. Comparatively, 7.5% of OSI Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
InvenSense has a beta of 2.58, indicating that its stock price is 158% more volatile than the S&P 500. Comparatively, OSI Systems has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.
Earnings & Valuation
This table compares InvenSense and OSI Systems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|OSI Systems||$930.02 million||1.60||$117.25 million||$1.30||61.23|
OSI Systems has higher revenue and earnings than InvenSense. InvenSense is trading at a lower price-to-earnings ratio than OSI Systems, indicating that it is currently the more affordable of the two stocks.
OSI Systems beats InvenSense on 8 of the 11 factors compared between the two stocks.
InvenSense, Inc. (InvenSense) is engaged in designing, developing, marketing and selling of sensor system-on-chip (SoC), including accelerometers, gyroscopes and microphones for the mobile, wearable, smart home, gaming, industrial and automotive market segments. The Company delivers solutions based on its motion and sound technology; focused on solutions, such as smartphones, tablets, wearables, console and portable video gaming devices, digital television and set-top box remote controls, fitness accessories, sports equipment, digital still cameras, automobiles, ultra-books, laptops, hearing aids, stabilization systems, tools, navigation devices, remote controlled toys and other household consumer and industrial devices. Its motion solutions detect and track an object’s motion in three-dimensional space.
About OSI Systems
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.
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