OSI Systems (NASDAQ:OSIS – Get Free Report) and Eltek (NASDAQ:ELTK – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.
Valuation and Earnings
This table compares OSI Systems and Eltek”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OSI Systems | $1.71 billion | 2.64 | $149.64 million | $8.83 | 31.04 |
| Eltek | $46.53 million | 1.33 | $4.22 million | $0.17 | 54.00 |
Profitability
This table compares OSI Systems and Eltek’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OSI Systems | 8.52% | 18.58% | 7.36% |
| Eltek | 2.35% | 2.68% | 1.85% |
Analyst Recommendations
This is a breakdown of recent ratings for OSI Systems and Eltek, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OSI Systems | 0 | 1 | 5 | 1 | 3.00 |
| Eltek | 0 | 1 | 0 | 0 | 2.00 |
OSI Systems currently has a consensus price target of $282.00, suggesting a potential upside of 2.88%. Given OSI Systems’ stronger consensus rating and higher probable upside, analysts clearly believe OSI Systems is more favorable than Eltek.
Insider and Institutional Ownership
89.2% of OSI Systems shares are owned by institutional investors. Comparatively, 64.6% of Eltek shares are owned by institutional investors. 4.3% of OSI Systems shares are owned by insiders. Comparatively, 72.0% of Eltek shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
OSI Systems has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Eltek has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
Summary
OSI Systems beats Eltek on 13 of the 15 factors compared between the two stocks.
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.
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.
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