Financial Analysis: OSI Systems (OSIS) & Uni-Pixel (UNXL)

OSI Systems (NASDAQ: OSIS) and Uni-Pixel (NASDAQ:UNXL) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Risk & Volatility

OSI Systems has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Uni-Pixel has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Earnings and Valuation

This table compares OSI Systems and Uni-Pixel’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
OSI Systems $930.02 million 1.58 $117.25 million $1.30 60.33
Uni-Pixel $4.91 million 4.02 -$28.13 million ($0.70) -0.39

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

Analyst Recommendations

This is a breakdown of recent ratings for OSI Systems and Uni-Pixel, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OSI Systems 0 0 5 0 3.00
Uni-Pixel 0 1 1 0 2.50

OSI Systems currently has a consensus target price of $87.20, indicating a potential upside of 11.18%. Uni-Pixel has a consensus target price of $1.21, indicating a potential upside of 348.98%. Given Uni-Pixel’s higher possible upside, analysts clearly believe Uni-Pixel is more favorable than OSI Systems.

Institutional and Insider Ownership

9.7% of Uni-Pixel shares are held by institutional investors. 7.5% of OSI Systems shares are held by insiders. Comparatively, 2.3% of Uni-Pixel shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
OSI Systems 2.73% 9.04% 4.17%
Uni-Pixel -675.26% -627.00% -249.93%

Summary

OSI Systems beats Uni-Pixel on 10 of the 13 factors compared between the two stocks.

About OSI Systems

OSI Systems, Inc., through its subsidiaries, is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. The Company sells its products and provides related services in diversified markets, including homeland security, healthcare, defense and aerospace. The Company operates in three segments, which include Security, which provides security and inspection systems, turnkey security screening solutions and related services; Healthcare, which provides patient monitoring, diagnostic cardiology, anesthesia delivery and ventilation systems and defibrillators, and Optoelectronics and Manufacturing, which provides electronic components and electronic manufacturing services for the Security and Healthcare divisions, as well as to external original equipment manufacturer (OEM) customers and end users for applications in the defense, aerospace, medical and industrial markets, among others.

About Uni-Pixel

Uni-Pixel, Inc. develops and markets touch sensor films for the touch screen and flexible electronics markets. The Company’s roll-to-roll electronics manufacturing process patterns fine line conductive elements on thin films. The Company markets its technologies for touch panel sensor and hard coat resin for cover glass replacement, and protective cover film applications under the XTouch and Diamond Guard brands. The Company is engaged in the optical design and manufacturing of microstructured polymer film materials and related technologies for the display, flexible electronics and automotive industries. It makes transparent conductive films and flexible electronic films for high volume, roll to roll patterning of flexible thin-film conductor patterns. The Company sells the touch screen films under the brand XTouch, as sub-components of a fully assembled touch sensor module. The Company has developed a hard coat resin that can be applied using film, spray or inkjet coating methods.

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