Analyzing OSI Systems (NASDAQ:OSIS) & Navitas Semiconductor (NASDAQ:NVTS)

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

Volatility and Risk

OSI Systems has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Navitas Semiconductor has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500.

Institutional and Insider Ownership

89.2% of OSI Systems shares are owned by institutional investors. Comparatively, 46.1% of Navitas Semiconductor shares are owned by institutional investors. 5.2% of OSI Systems shares are owned by company insiders. Comparatively, 31.8% of Navitas Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares OSI Systems and Navitas Semiconductor’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%
Navitas Semiconductor	-84.61%	-23.64%	-20.18%

Analyst Recommendations

This is a breakdown of current ratings and price targets for OSI Systems and Navitas Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OSI Systems	0	1	5	0	2.83
Navitas Semiconductor	0	2	5	0	2.71

OSI Systems presently has a consensus target price of $212.00, indicating a potential upside of 4.52%. Navitas Semiconductor has a consensus target price of $4.11, indicating a potential upside of 62.34%. Given Navitas Semiconductor’s higher possible upside, analysts plainly believe Navitas Semiconductor is more favorable than OSI Systems.

Valuation & Earnings

This table compares OSI Systems and Navitas Semiconductor”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	$1.65 billion	2.06	$128.15 million	$7.77	26.10
Navitas Semiconductor	$83.30 million	5.67	-$145.43 million	($0.45)	-5.62

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

Summary

OSI Systems beats Navitas Semiconductor on 9 of the 13 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 Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.