Head-To-Head Survey: Eltek (NASDAQ:ELTK) and OSI Systems (NASDAQ:OSIS)

Eltek (NASDAQ:ELTK) and OSI Systems (NASDAQ:OSIS) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Insider and Institutional Ownership

64.6% of Eltek shares are owned by institutional investors. Comparatively, 89.2% of OSI Systems shares are owned by institutional investors. 72.0% of Eltek 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Eltek has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, OSI Systems has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Profitability

This table compares Eltek and OSI Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eltek	2.35%	2.68%	1.85%
OSI Systems	8.52%	18.58%	7.36%

Earnings and Valuation

This table compares Eltek and OSI Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eltek	$46.53 million	1.26	$4.22 million	$0.17	51.18
OSI Systems	$1.71 billion	2.58	$149.64 million	$8.83	30.42

OSI Systems has higher revenue and earnings than Eltek. OSI Systems is trading at a lower price-to-earnings ratio than Eltek, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Eltek and OSI Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eltek	0	1	0	0	2.00
OSI Systems	0	1	5	1	3.00

OSI Systems has a consensus price target of $282.00, suggesting a potential upside of 4.98%. Given OSI Systems’ stronger consensus rating and higher possible upside, analysts plainly believe OSI Systems is more favorable than Eltek.

Summary

OSI Systems beats Eltek on 13 of the 15 factors compared between the two stocks.

About Eltek

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petah Tikva, Israel. Eltek Ltd. operates as a subsidiary of Nistec Golan Ltd.

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.