Analyzing OSI Systems (NASDAQ:OSIS) and Interlink Electronics (NASDAQ:LINK)

Interlink Electronics (NASDAQ:LINK) 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 dividends, analyst recommendations, valuation, profitability, earnings, institutional ownership and risk.

Insider and Institutional Ownership

89.2% of OSI Systems shares are owned by institutional investors. 77.5% of Interlink Electronics shares are owned by company insiders. Comparatively, 4.3% of OSI Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Interlink Electronics and OSI Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interlink Electronics	$12.66 million	3.86	-$1.62 million	($0.07)	-44.29
OSI Systems	$1.79 billion	1.73	$154.71 million	$9.33	21.05

OSI Systems has higher revenue and earnings than Interlink Electronics. Interlink Electronics 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 Interlink Electronics and OSI Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interlink Electronics	-8.95%	-12.38%	-9.81%
OSI Systems	8.79%	21.57%	7.19%

Analyst Recommendations

This is a breakdown of recent ratings for Interlink Electronics and OSI Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interlink Electronics	1	0	0	0	1.00
OSI Systems	0	2	5	0	2.71

OSI Systems has a consensus target price of $276.71, indicating a potential upside of 40.92%. Given OSI Systems’ stronger consensus rating and higher possible upside, analysts clearly believe OSI Systems is more favorable than Interlink Electronics.

Summary

OSI Systems beats Interlink Electronics on 11 of the 13 factors compared between the two stocks.

About Interlink Electronics

Interlink Electronics, Inc., together with its subsidiaries, designs, develops, manufactures, and sells force-sensing technologies that incorporate proprietary materials technology, firmware, and software into sensor-based products and custom sensor system solutions in the United States, Asia, the Middle East, Europe, and internationally. The company's products include sensor components, subassemblies, modules, and products that support cursor control and novel three-dimensional user inputs. It also provides simple force and piezo sensors to multi-finger capable rugged trackpads; Force-Sensing Resistor sensors; force sensing linear potentiometers for menu navigation and control; and integrated mouse modules and pointing solutions to various electronic devices. In addition, the company offers human machine interface technology platforms for various applications, including vehicle entry, vehicle multi-media control interface, rugged touch controls, presence detection, collision detection, speed and torque controls, pressure mapping, biological monitoring, and others; and embedded firmware development and integration support services. It serves multi-national and start-up companies, technology design houses, original design manufacturers, original equipment manufacturers, and universities in various markets, such as consumer electronics, automotive, industrial, and medical through direct sales employees, as well as outside sales representatives and distributors. Interlink Electronics, Inc. was incorporated in 1985 and is headquartered in Irvine, 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.