OSI Systems (NASDAQ:OSIS – Get Free Report) and Nidec (OTCMKTS:NJDCY – 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 profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
Analyst Ratings
This is a summary of recent ratings and price targets for OSI Systems and Nidec, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OSI Systems | 0 | 1 | 6 | 0 | 2.86 |
| Nidec | 0 | 3 | 0 | 0 | 2.00 |
OSI Systems presently has a consensus target price of $294.00, suggesting a potential upside of 32.37%. Given OSI Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe OSI Systems is more favorable than Nidec.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OSI Systems | $1.71 billion | 2.14 | $149.64 million | $8.76 | 25.35 |
| Nidec | $17.12 billion | 2.73 | $1.11 billion | $0.26 | 18.85 |
Nidec has higher revenue and earnings than OSI Systems. Nidec is trading at a lower price-to-earnings ratio than OSI Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
OSI Systems has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Nidec has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.
Insider & Institutional Ownership
89.2% of OSI Systems shares are owned by institutional investors. Comparatively, 0.2% of Nidec shares are owned by institutional investors. 4.3% of OSI Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares OSI Systems and Nidec’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% |
| Nidec | 6.82% | 10.15% | 5.24% |
Summary
OSI Systems beats Nidec on 11 of the 14 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 Nidec
Nidec Corporation, together with its subsidiaries, develops, manufactures, and sells motors, electronics and optical components, and other related products in Japan and internationally. The company offers medium- and large-size motors, small-size and precision motors, motor-related products, units and modules, automotive components, mechanical equipment/machine tools, inspection and measuring equipment, electronic devices, sensors, and other products, as well as mold, molding, cutting, and machining components. Its products are used for applications in robotics, IoT products, automotive components, home appliances, logistics/agriculture, information technology, office automation, mobile optical components, medical and health care products, housing equipment, commercial and professional products, industrial machinery, and processing/inspection equipment. The company was incorporated in 1973 and is headquartered in Kyoto, Japan..
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