Contrasting One Stop Systems (NASDAQ:OSS) & Erayak Power Solution Group (NASDAQ:RAYA)

Erayak Power Solution Group (NASDAQ:RAYA) and One Stop Systems (NASDAQ:OSS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Institutional & Insider Ownership

0.3% of Erayak Power Solution Group shares are owned by institutional investors. Comparatively, 32.7% of One Stop Systems shares are owned by institutional investors. 10.8% of One Stop Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Erayak Power Solution Group has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500. Comparatively, One Stop Systems has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Profitability

This table compares Erayak Power Solution Group and One Stop Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Erayak Power Solution Group	N/A	N/A	N/A
One Stop Systems	-11.47%	-26.14%	-17.67%

Valuation & Earnings

This table compares Erayak Power Solution Group and One Stop Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Erayak Power Solution Group	$30.30 million	0.11	-$1.12 million	N/A	N/A
One Stop Systems	$54.69 million	3.62	-$13.63 million	($0.32)	-25.22

Erayak Power Solution Group has higher earnings, but lower revenue than One Stop Systems.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Erayak Power Solution Group and One Stop Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Erayak Power Solution Group	1	0	0	0	1.00
One Stop Systems	1	0	3	0	2.50

One Stop Systems has a consensus target price of $8.00, indicating a potential downside of 0.87%. Given One Stop Systems’ stronger consensus rating and higher possible upside, analysts plainly believe One Stop Systems is more favorable than Erayak Power Solution Group.

Summary

One Stop Systems beats Erayak Power Solution Group on 8 of the 12 factors compared between the two stocks.

About Erayak Power Solution Group

Erayak Power Solution Group Inc., through its subsidiaries, engages in the research and development, manufacture, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. The company's products are used in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. It operates in China, France, Poland, Mexico, and the United Kingdom. The company was incorporated in 2019 and is based in Wenzhou, the People's Republic of China. Erayak Power Solution Group Inc. operates as a subsidiary of Erayak International Limited.

About One Stop Systems

One Stop Systems, Inc. engages in the design, manufacture, and marketing of high-performance compute, high speed storage hardware and software, switch fabrics, and systems for edge deployments in the United States and internationally. The company's systems are built using the central processing unit, graphical processing unit, high-speed switch fabrics, and flash storage technologies. It provides custom servers, data acquisition platforms, compute accelerators, solid-state storage arrays, and system I/O expansion systems, as well as edge optimized industrial and panel PCs, tablets, and handheld compute devices. The company also offers ruggedized mobile tablets and handhelds that meet the specialized requirement for devices deployed at the edge in a diverse set of environmental conditions. It sells its products to multinational companies, governmental agencies, military contractors, military services, and technology providers through its website, web store, direct sales team, and original equipment manufacturer focused sales, as well as through a network of resellers and distributors. The company was founded in 1998 and is headquartered in Escondido, California.