Zebra Technologies Corporation (NASDAQ: ZBRA) and OSI Systems (NASDAQ:OSIS) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitabiliy, earnings, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
94.2% of Zebra Technologies Corporation shares are held by institutional investors. 2.5% of Zebra Technologies Corporation shares are held by company insiders. Comparatively, 7.5% of OSI Systems shares are held 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.
This table compares Zebra Technologies Corporation and OSI Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Zebra Technologies Corporation||-2.98%||37.96%||6.41%|
Volatility & Risk
Zebra Technologies Corporation has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, OSI Systems has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.
Valuation & Earnings
This table compares Zebra Technologies Corporation and OSI Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Zebra Technologies Corporation||$3.59 billion||1.51||$602.00 million||($2.06)||-49.88|
|OSI Systems||$930.02 million||1.60||$117.25 million||$1.30||61.24|
Zebra Technologies Corporation has higher revenue and earnings than OSI Systems. Zebra Technologies Corporation is trading at a lower price-to-earnings ratio than OSI Systems, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Zebra Technologies Corporation and OSI Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Zebra Technologies Corporation||0||4||4||0||2.50|
Zebra Technologies Corporation presently has a consensus target price of $96.83, indicating a potential downside of 5.77%. OSI Systems has a consensus target price of $87.20, indicating a potential upside of 9.53%. Given OSI Systems’ stronger consensus rating and higher probable upside, analysts plainly believe OSI Systems is more favorable than Zebra Technologies Corporation.
OSI Systems beats Zebra Technologies Corporation on 8 of the 14 factors compared between the two stocks.
About Zebra Technologies Corporation
Zebra Technologies Corporation designs, manufactures and sells a range of automatic identification and data capture (AIDC) products. The Company’s AIDC products include mobile computers, barcode scanners, radio frequency identification (RFID) readers, wireless local area network (WLAN) products, specialty printers for barcode labeling and personal identification, real-time location systems (RTLS), related accessories and supplies, such as self-adhesive labels and other consumables, and utilities and application software. The Company operates through two segments: Enterprise, which comprises its mobile computing, data capture, RFID and WLAN products, and services, and Legacy Zebra, which comprises barcode and card printing, location solutions, supplies and services. The Company’s products are used in automatic identification (auto ID), data collection and personal identification applications.
About OSI Systems
OSI Systems, Inc., through its subsidiaries, is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. The Company sells its products and provides related services in diversified markets, including homeland security, healthcare, defense and aerospace. The Company operates in three segments, which include Security, which provides security and inspection systems, turnkey security screening solutions and related services; Healthcare, which provides patient monitoring, diagnostic cardiology, anesthesia delivery and ventilation systems and defibrillators, and Optoelectronics and Manufacturing, which provides electronic components and electronic manufacturing services for the Security and Healthcare divisions, as well as to external original equipment manufacturer (OEM) customers and end users for applications in the defense, aerospace, medical and industrial markets, among others.
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