Contrasting OSI Systems (NASDAQ:OSIS) and Keysight Technologies (NYSE:KEYS)

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Keysight Technologies and OSI Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keysight Technologies	0	2	11	1	2.93
OSI Systems	0	2	5	0	2.71

Keysight Technologies presently has a consensus price target of $392.83, indicating a potential upside of 20.21%. OSI Systems has a consensus price target of $281.71, indicating a potential upside of 37.99%. Given OSI Systems’ higher possible upside, analysts plainly believe OSI Systems is more favorable than Keysight Technologies.

Volatility & Risk

Keysight Technologies has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, OSI Systems has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Keysight Technologies	19.08%	24.34%	13.10%
OSI Systems	8.66%	20.33%	7.24%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keysight Technologies	$5.38 billion	10.35	$850.00 million	$7.28	44.89
OSI Systems	$1.79 billion	1.82	$154.71 million	$9.00	22.68

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

Insider & Institutional Ownership

84.6% of Keysight Technologies shares are held by institutional investors. Comparatively, 89.2% of OSI Systems shares are held by institutional investors. 0.4% of Keysight Technologies shares are held by company insiders. Comparatively, 4.3% of OSI Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Keysight Technologies beats OSI Systems on 11 of the 15 factors compared between the two stocks.

About Keysight Technologies

Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Communications Solutions Group and Electronic Industrial Solutions Group. It offers electronic design automation (EDA) software; instrument measurement software, instrument workflow software, and software testing; digital multimeter, phase noise measurement, power meters and power sensors, counters, LCR meters and impedance measurement products, and electrometers; and spectrum analyzers, network analyzers, logic analyzers, protocol analyzers and exercisers, bit error ratio testers, noise figure analyzers, AC and DC power analyzers, materials test equipment, device current waveform analyzers, and curve tracers. The company also provides waveform and function generators, arbitrary waveform generators, DC power supplies, and DC electronic loads; wireless drive test, radio access and core network test, wireless analyzers, wireless network emulators, and over-the-air test; application and threat intelligence, cloud test, cyber training simulator, network test hardware, synthetic traffic generators, protocol and load test, network security test, and network modeling; bypass switches, clock synchronization, cloud visibility, network and application monitoring, network packet brokers, and network taps; and application-specific test systems, photonic test and measurement products, and MMIC millimeter-wave and microwave devices. In addition, it offers product support, technical support, installation, training, engineering, and integration services. The company sells its products through direct sales force, distributors, resellers, and manufacturer's representatives. Keysight Technologies, Inc. was founded in 1939 and is headquartered in Santa Rosa, California.

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.