Reviewing OSI Systems (NASDAQ:OSIS) and Qorvo (NASDAQ:QRVO)

OSI Systems (NASDAQ:OSIS) and Qorvo (NASDAQ:QRVO) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for OSI Systems and Qorvo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OSI Systems	0	0	5	0	3.00
Qorvo	3	12	4	0	2.05

OSI Systems currently has a consensus target price of $209.40, indicating a potential upside of 1.13%. Qorvo has a consensus target price of $95.84, indicating a potential upside of 24.42%. Given Qorvo’s higher probable upside, analysts clearly believe Qorvo is more favorable than OSI Systems.

Volatility & Risk

OSI Systems has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Institutional and Insider Ownership

89.2% of OSI Systems shares are owned by institutional investors. Comparatively, 88.6% of Qorvo shares are owned by institutional investors. 5.2% of OSI Systems shares are owned by company insiders. Comparatively, 0.5% of Qorvo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OSI Systems	8.15%	18.22%	7.48%
Qorvo	0.71%	12.41%	6.74%

Valuation and Earnings

This table compares OSI Systems and Qorvo”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	$1.54 billion	2.26	$128.15 million	$7.77	26.65
Qorvo	$3.77 billion	1.91	-$70.32 million	$0.28	275.11

OSI Systems has higher earnings, but lower revenue than Qorvo. OSI Systems is trading at a lower price-to-earnings ratio than Qorvo, indicating that it is currently the more affordable of the two stocks.

Summary

OSI Systems beats Qorvo on 10 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 Qorvo

Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets. The CSG segment supplies connectivity and sensor components and systems featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-/BAW-based sensors. It serves markets, such as smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. The company also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. It operates in the United States, China, other Asian countries, Taiwan, and Europe. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.