Vicor (NASDAQ:VICR – Get Free Report) and OSI Systems (NASDAQ:OSIS – Get Free Report) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Insider & Institutional Ownership
47.5% of Vicor shares are owned by institutional investors. Comparatively, 89.2% of OSI Systems shares are owned by institutional investors. 31.3% of Vicor shares are owned by insiders. Comparatively, 4.3% of OSI Systems 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.
Valuation and Earnings
This table compares Vicor and OSI Systems”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vicor | $452.70 million | 15.60 | $118.56 million | $2.61 | 59.63 |
| OSI Systems | $1.71 billion | 2.58 | $149.64 million | $8.83 | 30.36 |
OSI Systems has higher revenue and earnings than Vicor. OSI Systems is trading at a lower price-to-earnings ratio than Vicor, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Vicor and OSI Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vicor | 0 | 1 | 3 | 1 | 3.00 |
| OSI Systems | 0 | 1 | 5 | 1 | 3.00 |
Vicor currently has a consensus price target of $118.33, suggesting a potential downside of 23.97%. OSI Systems has a consensus price target of $282.00, suggesting a potential upside of 5.18%. Given OSI Systems’ higher probable upside, analysts plainly believe OSI Systems is more favorable than Vicor.
Risk and Volatility
Vicor has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, OSI Systems has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.
Profitability
This table compares Vicor and OSI Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vicor | 26.19% | 18.73% | 16.61% |
| OSI Systems | 8.52% | 18.58% | 7.36% |
Summary
Vicor beats OSI Systems on 7 of the 13 factors compared between the two stocks.
About Vicor
Vicor Corporation, together with its subsidiaries, designs, develops, manufactures, and markets modular power components and power systems for converting electrical power in the United States, Europe, the Asia Pacific, and internationally. The company offers a range of brick-format DC-DC converters; complementary components provide AC line rectification, input filtering, power factor correction, and transient protection; and input and output voltage, and output power products, as well as electrical and mechanical accessories. It also design, sells, and service custom power systems solutions. The company serves independent manufacturers of electronic devices, original equipment manufacturers, and their contract manufacturers in the aerospace and aviation, defense electronics, satellites, factory automation, instrumentation, test equipment, transportation, telecommunications and networking infrastructure and vehicles, and transportation markets. Vicor Corporation was incorporated in 1981 and is headquartered in Andover, Massachusetts.
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.
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