Eltek (NASDAQ:ELTK – Get Free Report) and OSI Systems (NASDAQ:OSIS – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.
Institutional and Insider Ownership
64.6% of Eltek shares are held by institutional investors. Comparatively, 89.2% of OSI Systems shares are held by institutional investors. 72.0% of Eltek shares are held by insiders. Comparatively, 4.3% of OSI Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for Eltek and OSI Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eltek | 0 | 1 | 0 | 0 | 2.00 |
| OSI Systems | 0 | 1 | 5 | 1 | 3.00 |
Risk & Volatility
Eltek has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, OSI Systems has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.
Valuation and Earnings
This table compares Eltek and OSI Systems”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eltek | $49.31 million | 1.19 | $4.22 million | $0.17 | 51.18 |
| OSI Systems | $1.71 billion | 2.58 | $149.64 million | $8.83 | 30.42 |
OSI Systems has higher revenue and earnings than Eltek. OSI Systems is trading at a lower price-to-earnings ratio than Eltek, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Eltek and OSI Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eltek | 2.35% | 2.68% | 1.85% |
| OSI Systems | 8.52% | 18.58% | 7.36% |
Summary
OSI Systems beats Eltek on 13 of the 15 factors compared between the two stocks.
About Eltek
Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.
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.
Receive News & Ratings for Eltek Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Eltek and related companies with MarketBeat.com's FREE daily email newsletter.
