OSI Systems (NASDAQ:OSIS) versus IEH (OTCMKTS:IEHC) Financial Analysis

IEH (OTCMKTS:IEHC) and OSI Systems (NASDAQ:OSIS) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Volatility & Risk

IEH has a beta of -0.04, indicating that its stock price is 104% less volatile than the S&P 500. Comparatively, OSI Systems has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IEH	0.04%	0.06%	0.05%
OSI Systems	8.66%	20.33%	7.24%

Insider and Institutional Ownership

89.2% of OSI Systems shares are held by institutional investors. 28.1% of IEH shares are held by insiders. Comparatively, 4.3% of OSI Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IEH	$29.42 million	2.42	-$1.30 million	($0.01)	-2,870.00
OSI Systems	$1.79 billion	1.76	$154.71 million	$9.00	21.97

OSI Systems has higher revenue and earnings than IEH. IEH 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 Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IEH	0	1	0	0	2.00
OSI Systems	0	2	5	0	2.71

OSI Systems has a consensus price target of $281.71, indicating a potential upside of 42.49%. Given OSI Systems’ stronger consensus rating and higher probable upside, analysts clearly believe OSI Systems is more favorable than IEH.

Summary

OSI Systems beats IEH on 12 of the 14 factors compared between the two stocks.

About IEH

IEH Corporation designs, develops, manufactures, and sells printed circuit board connectors and custom interconnects for high performance applications in the United States and internationally. The company's products are used as basic components of larger assemblies of finished goods. It markets its products directly to original equipment manufacturers, as well as through authorized representatives and distributors primarily to defense, aerospace, medical, industrial, test equipment, space, and commercial electronic markets. The company was formerly known as Industrial Heat Treating Company, Inc. and changed its name to IEH Corporation in March 1989. IEH Corporation was founded in 1941 and is based in Brooklyn, New York.

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.