Analyzing OSI Systems (NASDAQ:OSIS) and Reliability (OTCMKTS:RLBY)

OSI Systems (NASDAQ:OSIS) and Reliability (OTCMKTS:RLBY) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Volatility and Risk

OSI Systems has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Reliability has a beta of -0.8, indicating that its share price is 180% less volatile than the S&P 500.

Institutional & Insider Ownership

89.2% of OSI Systems shares are held by institutional investors. 4.3% of OSI Systems shares are held by insiders. Comparatively, 10.1% of Reliability shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares OSI Systems and Reliability’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OSI Systems	8.42%	18.84%	7.13%
Reliability	-2.09%	-6.75%	-4.82%

Valuation and Earnings

This table compares OSI Systems and Reliability”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OSI Systems	$1.71 billion	2.13	$149.64 million	$8.76	25.27
Reliability	$20.72 million	0.18	-$660,000.00	N/A	N/A

OSI Systems has higher revenue and earnings than Reliability.

Analyst Ratings

This is a summary of current ratings and price targets for OSI Systems and Reliability, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OSI Systems	0	2	5	0	2.71
Reliability	0	0	0	0	0.00

OSI Systems currently has a consensus target price of $291.86, indicating a potential upside of 31.83%. Given OSI Systems’ stronger consensus rating and higher probable upside, equities analysts plainly believe OSI Systems is more favorable than Reliability.

Summary

OSI Systems beats Reliability on 11 of the 12 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 Reliability

Reliability Incorporated, through its subsidiary, The Maslow Media Group, Inc., provides workforce solutions in the United States and internationally. It operates through four segments: Employer of Record, Recruiting and Staffing, Video and Multimedia Production resources, and Direct Hire. The company provides state employment registration, employee onboarding/offboarding, payroll processing, benefits offerings and administration, workers compensation claim management, employee relations, regulatory compliance, and on-site workforce management services, as well as management of state/county/city mandated employee benefits, such as paid safe and sick leaves, and locality mandated training and unemployment claims administration. It also develops a network of multimedia and video production workers for media clients, camera crews, and other technical and creative talent; and offers on-demand or short-term staffing assignments, contract staffing, and on-site management administration. In addition, the company provides multimedia and video production solutions, including pre-production conceptualization; project consultation from scriptwriting to site scouting; budget development and management; booking and managing of logistics for field and studio teams; and broadcast camera crews and field support, which includes makeup artists, av support, field producers, and full equipment rental. It also offers post-production facilities and freelance support including non-linear editors, graphic artists, narrators, and actors; animation and graphic design development, such as whiteboard animation; live transmission services from satellite to streaming; and management of staffed client studios for corporate, government and broadcast clients. Further, the company provides direct placement requests by MMG clients for various posts, including administrative, media, and IT professionals; and Script to Screen services. The company is headquartered in Clarksburg, Maryland.