CPS Technologies (NASDAQ:CPSH) and OSI Systems (NASDAQ:OSIS) Head-To-Head Comparison

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

Risk & Volatility

CPS Technologies has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500. Comparatively, OSI Systems has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

11.2% of CPS Technologies shares are held by institutional investors. Comparatively, 89.2% of OSI Systems shares are held by institutional investors. 13.2% of CPS Technologies shares are held by insiders. Comparatively, 4.3% of OSI Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares CPS Technologies and OSI Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CPS Technologies	$32.60 million	2.42	$420,000.00	N/A	N/A
OSI Systems	$1.71 billion	2.05	$149.64 million	$8.76	24.28

OSI Systems has higher revenue and earnings than CPS Technologies.

Analyst Ratings

This is a summary of recent recommendations and price targets for CPS Technologies and OSI Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CPS Technologies	1	1	1	0	2.00
OSI Systems	0	1	6	0	2.86

CPS Technologies presently has a consensus target price of $6.00, suggesting a potential upside of 37.61%. OSI Systems has a consensus target price of $294.00, suggesting a potential upside of 38.25%. Given OSI Systems’ stronger consensus rating and higher probable upside, analysts plainly believe OSI Systems is more favorable than CPS Technologies.

Profitability

This table compares CPS Technologies and OSI Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CPS Technologies	0.10%	0.16%	0.13%
OSI Systems	8.42%	18.84%	7.13%

Summary

OSI Systems beats CPS Technologies on 9 of the 12 factors compared between the two stocks.

About CPS Technologies

CPS Technologies Corporation provides advanced material solutions to the transportation, automotive, energy, computing/internet, telecommunication, aerospace, defense, and oil and gas markets in the United States, Europe, and Asia. The company offers metal matrix composites such as baseplates for various applications, including motor controllers used in electric trains, subway cars, wind turbines, and hybrid and electric vehicles; hermetic packages for use in radar, satellite, and avionics applications; baseplates and housings used in modules built with wide band gap semiconductors; and lids and heat spreaders for use in internet switches and routers. It also assembles housings and packages that includes metal matrix composite components for hybrid circuits; and produces armor for naval and military applications. The company sells its products to microelectronics systems companies. The company was formerly known as Ceramics Process Systems Corporation and changed its name to CPS Technologies Corporation in March 2007. CPS Technologies Corporation was incorporated in 1984 and is based in Norton, Massachusetts.

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.