Microsemi (NASDAQ:MSCC) 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 valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Institutional & Insider Ownership

90.7% of Microsemi shares are held by institutional investors. Comparatively, 99.1% of OSI Systems shares are held by institutional investors. 0.6% of Microsemi shares are held by insiders. Comparatively, 8.6% of OSI Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Microsemi N/A N/A N/A
OSI Systems 3.22% 14.93% 5.53%

Analyst Ratings

This is a summary of current ratings and recommmendations for Microsemi and OSI Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microsemi 0 10 0 0 2.00
OSI Systems 0 1 3 0 2.75

Microsemi presently has a consensus target price of $63.70, suggesting a potential upside of ∞. OSI Systems has a consensus target price of $95.00, suggesting a potential upside of 9.56%. Given Microsemi’s higher probable upside, equities research analysts plainly believe Microsemi is more favorable than OSI Systems.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Microsemi N/A N/A N/A N/A N/A
OSI Systems $1.09 billion 1.44 -$29.12 million $3.61 24.02

Microsemi has higher earnings, but lower revenue than OSI Systems.

Summary

OSI Systems beats Microsemi on 8 of the 9 factors compared between the two stocks.

About Microsemi

Microsemi Corporation designs, manufactures, and markets analog and mixed-signal semiconductor solutions in the United States, Europe, and Asia. The company offers analog mixed-signal integrated circuits; field programmable gate arrays; system on chip solutions and application-specific integrated circuits; power management products; and timing and synchronization devices, and precise time solutions. It also provides voice processing devices, radio frequency solutions, discrete components, enterprise storage and communication solutions, security technologies and scalable anti-tamper products, Ethernet solutions, and power-over-Ethernet integrated circuits and midspans, as well as custom design capabilities and services. The company's products are used in various applications, such as communications infrastructure systems comprising wireless and wired LAN systems; implantable pacemakers and defibrillators; radar systems; missile systems; military and commercial satellites and aircraft; and enterprise storage and hyperscale data centers. It serves aerospace and defense, communications, data center, and industrial markets. The company was formerly known as Microsemiconductor Corp and changed its name to Microsemi Corporation in March 1983. Microsemi Corporation was founded in 1960 and is headquartered in Aliso Viejo, California.

About OSI Systems

OSI Systems, Inc. designs, manufactures, and sells electronic systems and components worldwide. The company's Security segment offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation detection, and explosive and narcotics trace detection systems under the Rapiscan Systems and AS&E names. It also provides site design, installation, training, and technical support services; and turnkey security screening solutions under the S2 name. The company's Healthcare segment offers patient monitoring, diagnostic cardiology, and anesthesia delivery and ventilation systems, as well as related supplies and accessories under the Spacelabs name for use in critical care, emergency, and perioperative areas within hospitals, as well as physicians' offices, medical clinics, and ambulatory surgery centers. Its Optoelectronics and Manufacturing segment provides optoelectronic devices primarily under the OSI Optoelectronics, OSI LaserDiode, and OSI Laserscan 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 primarily under the OSI Electronics, APlus Products, Altaflex, and PFC names; and LCD displays for medical, industrial, and consumer electronics applications, as well as flex circuits and touch panels. In addition, 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 founded in 1987 and is headquartered in Hawthorne, California.

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