Critical Contrast: OSI Systems (NASDAQ:OSIS) and Ralliant (NYSE:RAL)

OSI Systems (NASDAQ:OSIS) and Ralliant (NYSE:RAL) are both mid-cap technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Volatility & Risk

OSI Systems has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Ralliant has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for OSI Systems and Ralliant, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OSI Systems	0	2	5	0	2.71
Ralliant	0	5	7	0	2.58

OSI Systems presently has a consensus price target of $276.71, indicating a potential upside of 41.03%. Ralliant has a consensus price target of $77.40, indicating a potential upside of 12.59%. Given OSI Systems’ stronger consensus rating and higher possible upside, analysts clearly believe OSI Systems is more favorable than Ralliant.

Valuation & Earnings

This table compares OSI Systems and Ralliant”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OSI Systems	$1.79 billion	1.75	$154.71 million	$9.00	21.80
Ralliant	$2.07 billion	3.68	-$1.22 billion	($10.85)	-6.34

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OSI Systems	8.66%	20.33%	7.24%
Ralliant	-56.38%	14.97%	6.99%

Institutional & Insider Ownership

89.2% of OSI Systems shares are held by institutional investors. 4.3% of OSI Systems shares are held by insiders. Comparatively, 0.4% of Ralliant 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.

Summary

OSI Systems beats Ralliant on 9 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 Ralliant

Ralliant Corporation is a provider of precision technologies which specializes in designing, developing, manufacturing and servicing precision instruments and engineered products. Ralliant Corporation is based in RALEIGH, N.C.