OSI Systems (NASDAQ:OSIS – Get Free Report) and Socket Mobile (NASDAQ:SCKT – Get Free Report) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Analyst Recommendations
This is a breakdown of current ratings and target prices for OSI Systems and Socket Mobile, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| OSI Systems | 0 | 2 | 5 | 0 | 2.71 |
| Socket Mobile | 1 | 0 | 0 | 0 | 1.00 |
OSI Systems currently has a consensus target price of $276.71, indicating a potential upside of 41.22%. Given OSI Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe OSI Systems is more favorable than Socket Mobile.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| OSI Systems | $1.79 billion | 1.73 | $154.71 million | $9.33 | 21.00 |
| Socket Mobile | $15.08 million | 0.25 | -$14.38 million | ($1.79) | -0.26 |
OSI Systems has higher revenue and earnings than Socket Mobile. Socket Mobile is trading at a lower price-to-earnings ratio than OSI Systems, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
89.2% of OSI Systems shares are owned by institutional investors. Comparatively, 3.8% of Socket Mobile shares are owned by institutional investors. 4.8% of OSI Systems shares are owned by insiders. Comparatively, 54.8% of Socket Mobile shares are owned 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.
Profitability
This table compares OSI Systems and Socket Mobile’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| OSI Systems | 8.79% | 21.57% | 7.19% |
| Socket Mobile | -102.45% | -423.92% | -106.33% |
Volatility & Risk
OSI Systems has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Socket Mobile has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Summary
OSI Systems beats Socket Mobile on 12 of the 14 factors compared between the two stocks.
About OSI Systems
OSI Systems, Inc. develops and manufactures security, healthcare, and optoelectronic products. Founded in 1987 and headquartered in Hawthorne, California, the company serves customers in the United States and internationally through three business areas: Security, Healthcare, and Optoelectronics and Manufacturing. Its Security division provides screening systems and related services for applications such as airports, borders, ports, and critical infrastructure. Products include systems for inspecting people, baggage, cargo, and vehicles, as well as security detection equipment.
About Socket Mobile
Socket Mobile, Inc. develops and sells data capture solutions designed to help businesses collect and transmit information using mobile devices. Its products include cordless barcode scanners, contactless and NFC readers, and related accessories used with smartphones, tablets, computers, and point-of-sale systems. The company also provides software development tools and integration services, including its CaptureSDK and SocketCam solutions, which enable developers and business applications to incorporate barcode scanning and other data capture capabilities.
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