Reviewing OSI Systems (OSIS) and AXT (AXTI)
OSI Systems (NASDAQ:OSIS) and AXT (NASDAQ:AXTI) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Risk & Volatility
OSI Systems has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, AXT has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
This table compares OSI Systems and AXT’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|OSI Systems||$1.09 billion||1.21||-$29.12 million||$3.61||20.13|
|AXT||$98.67 million||2.02||$10.14 million||$0.26||19.35|
AXT has lower revenue, but higher earnings than OSI Systems. AXT is trading at a lower price-to-earnings ratio than OSI Systems, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
98.7% of OSI Systems shares are owned by institutional investors. Comparatively, 54.4% of AXT shares are owned by institutional investors. 8.6% of OSI Systems shares are owned by company insiders. Comparatively, 6.9% of AXT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares OSI Systems and AXT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for OSI Systems and AXT, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
OSI Systems currently has a consensus price target of $83.83, indicating a potential upside of 15.38%. AXT has a consensus price target of $8.50, indicating a potential upside of 68.99%. Given AXT’s stronger consensus rating and higher probable upside, analysts clearly believe AXT is more favorable than OSI Systems.
AXT beats OSI Systems on 8 of the 14 factors compared between the two stocks.
OSI Systems Company Profile
OSI Systems, Inc. designs, manufactures, and sells electronic systems and components worldwide. The company's Security segment offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation detection, 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 turnkey security screening solutions under the S2 name. The company's Healthcare segment offers patient monitoring, diagnostic cardiology, and anesthesia delivery and ventilation systems, as well as related supplies and accessories under the Spacelabs name for use in critical care, emergency, and perioperative areas within hospitals, as well as physicians' offices, medical clinics, and ambulatory surgery centers. Its Optoelectronics and Manufacturing segment provides optoelectronic devices primarily under the OSI Optoelectronics, OSI LaserDiode, and OSI Laserscan 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 primarily 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 and touch panels. In addition, 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 founded in 1987 and is headquartered in Hawthorne, California.
AXT Company Profile
AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. It manufactures semiconductor substrates using its proprietary vertical gradient freeze technology. The company offers indium phosphide (InP) for use in fiber optic lasers and detectors, passive optical networks, data center connectivity, silicon photonics, photonic integrated circuits, terrestrial solar cells, lasers, military wireless RF amplifiers, infrared motion control, and infrared thermal imaging products. It also provides semi-insulating gallium with arsenic (GaAs) substrates, which are used for application in power amplifiers for wireless devices, and transistors and solar cells for drones. In addition, the company offers semi-conducting GaAs substrates that are used in opto-electronic products, including high brightness light emitting diodes in backlight wireless handsets and liquid crystal display televisions, as well as for automotive panel, signage, display, and lighting applications; and 3-D sensing using vertical cavity surface emitting lasers. Further, it provides germanium (Ge) substrates for space and terrestrial photovoltaic applications, as well as optical applications. Additionally, the company, through its subsidiaries and joint ventures, manufactures and sells raw materials, such as gallium, gallium alloys, InP poly-crystal, arsenic, Ge, Ge dioxide, high purity arsenic, pyrolytic boron nitride crucibles, and boron oxide. It sells its products through direct sales force in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea, and internationally. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was founded in 1986 and is headquartered in Fremont, California.
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