OSI Systems (OSIS) & Flextronics International (FLEX) Financial Analysis
OSI Systems (NASDAQ: OSIS) and Flextronics International (NASDAQ:FLEX) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
This table compares OSI Systems and Flextronics International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
99.6% of OSI Systems shares are owned by institutional investors. Comparatively, 94.8% of Flextronics International shares are owned by institutional investors. 7.5% of OSI Systems shares are owned by company insiders. Comparatively, 0.8% of Flextronics International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
OSI Systems has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Flextronics International has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
This is a breakdown of current ratings for OSI Systems and Flextronics International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
OSI Systems currently has a consensus target price of $94.20, suggesting a potential upside of 0.39%. Flextronics International has a consensus target price of $17.56, suggesting a potential downside of 1.22%. Given OSI Systems’ stronger consensus rating and higher possible upside, research analysts plainly believe OSI Systems is more favorable than Flextronics International.
Earnings and Valuation
This table compares OSI Systems and Flextronics International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|OSI Systems||$960.95 million||1.83||$144.35 million||$1.08||86.88|
|Flextronics International||$23.99 billion||0.39||$1.22 billion||$0.63||28.22|
Flextronics International has higher revenue and earnings than OSI Systems. Flextronics International 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 Flextronics International on 9 of the 14 factors compared between the two stocks.
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.
About Flextronics International
Flex Ltd, formerly Flextronics International Ltd. provides design, engineering, manufacturing, and supply chain services and solutions. The Company designs, builds, ships and services packaged consumer electronics and industrial products for original equipment manufacturers (OEMs). Its segments include High Reliability Solutions (HRS), Consumer Technologies Group (CTG), Industrial and Emerging Industries (IEI) and Communications & Enterprise Compute (CEC). The HRS segment consists of its medical business, automotive business, and defense and aerospace businesses. The CTG segment includes its mobile devices business, consumer electronics business and high-volume computing business. The IEI segment consists of semiconductor and capital equipment, office solutions, household industrial and lifestyle, industrial automation and kiosks, energy and metering, and lighting. The CEC segment includes radio access base stations, remote radio heads, and small cells for wireless infrastructure.
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