OSI Systems (NASDAQ: OSIS – Get Rating) and Rockley Photonics (NYSE: RKLY – Get Rating) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.
Valuation & Earnings:
This table compares OSI Systems and Rockley Photonics’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue: | Price / Sales Ratio: | Net Income: | Earnings Per Share: | Price / Earnings Ratio: | |
| OSI Systems: | $ 1.15 billion: | 1.28: | $ 74.05 million: | $ 5.94: | 14.48: |
| Rockley Photonics: | $ 8.21 million: | 34.88: | – $ 168.01 million: | ($ 0.99) | -2.24: |
OSI Systems has higher revenue and earnings than Rockley Photonics. Rockley Photonics is trading at a lower price-to-earnings ratio than OSI Systems, indicating that it is currently the most affordable of the two stocks.
Analyst Ratings:
This is a breakdown of recent recommendations for OSI Systems and Rockley Photonics, as reported by MarketBeat.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| OSI Systems: | 0: | 0: | 4: | 0: | 3.00: |
| Rockley Photonics: | 0: | 1: | 4: | 0: | 2.80: |
OSI Systems currently has a consensus target price of $ 126.50, indicating a potential upside of 47.11%. Rockley Photonics has a consensus target price of $ 11.80, indicating a potential upside of 431.53%. Given Rockley Photonics’ higher possible upside, analysts plainly believe Rockley Photonics is more favorable than OSI Systems.
Volatility and Risk:
OSI Systems has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Rockley Photonics has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500.
Insider & Institutional Ownership:
94.0% of OSI Systems shares are held by institutional investors. Comparatively, 12.4% of Rockley Photonics shares are held by institutional investors. 5.7% of OSI Systems shares are held by company insiders. Comparatively, 16.2% of Rockley Photonics 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.
Profitability:
This table compares OSI Systems and Rockley Photonics’ net margins, return on equity and return on assets.
| Net Margins: | Return on Equity: | Return on Assets: | |
| OSI Systems: | 9.12% | 15.74% | 6.91% |
| Rockley Photonics: | N / A: | -236.22% | -67.60% |
Summary:
OSI Systems beats Rockley Photonics on 10 of the 13 factors compared between the two stocks.
OSI Systems Company Profile: (Get Rating)
OSI Systems, Inc. designs, manufactures, and sells electronic systems and components worldwide. It operates through three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The Security segment offers baggage and parcel inspection, cargo and vehicle inspection, radiation detection, hold baggage and people screening, and explosive and narcotics trace detection systems under the Rapiscan Systems and AS&E names. It also provides site design, installation, training, and technical support services; and security screening solutions under the S2 name. The Healthcare segment offers patient monitoring and diagnostic cardiology systems, and related supplies 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, Semicoa, 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 names; and LCD displays for medical, industrial, and consumer electronics applications, as well as 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.
Rockley Photonics Company Profile: (Get Rating)
Rockley Photonics Holdings Limited develops and supplies silicon photonics in the United Kingdom and internationally. It offers a platform, which comprises photonic integrated circuits in silicon with integrated III-V devices; application-specific electronic integrated circuits; photonic and electronic co-packaging, which are supported by and coupled with biosensing algorithms, artificial intelligence, cloud analytics, firmware / software, system architecture, and hardware design. The company also provides a biosensing platform for consumer wellness, long-term health trend monitoring, patient monitoring, early disease detection, nutrition management, and treatment of certain chronic diseases. Rockley Photonics Holdings Limited was founded in 2013 and is headquartered in Altrincham, the United Kingdom.
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