Ichor (NASDAQ:ICHR – Get Free Report) and OSI Systems (NASDAQ:OSIS – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.
Profitability
This table compares Ichor and OSI Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ichor | -6.61% | -2.93% | -1.81% |
| OSI Systems | 8.56% | 18.10% | 8.19% |
Institutional & Insider Ownership
94.8% of Ichor shares are held by institutional investors. Comparatively, 89.2% of OSI Systems shares are held by institutional investors. 2.2% of Ichor shares are held by company insiders. Comparatively, 5.6% of OSI Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ichor | 0 | 1 | 4 | 0 | 2.80 |
| OSI Systems | 0 | 0 | 3 | 0 | 3.00 |
Ichor currently has a consensus price target of $46.60, suggesting a potential upside of 22.57%. OSI Systems has a consensus price target of $165.67, suggesting a potential upside of 16.09%. Given Ichor’s higher possible upside, research analysts plainly believe Ichor is more favorable than OSI Systems.
Earnings and Valuation
This table compares Ichor and OSI Systems’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ichor | $811.12 million | 1.57 | -$42.99 million | ($1.77) | -21.48 |
| OSI Systems | $1.28 billion | 1.90 | $91.78 million | $7.27 | 19.63 |
OSI Systems has higher revenue and earnings than Ichor. Ichor is trading at a lower price-to-earnings ratio than OSI Systems, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Ichor has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500. Comparatively, OSI Systems has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
Summary
OSI Systems beats Ichor on 10 of the 14 factors compared between the two stocks.
About Ichor
Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States and internationally. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. In addition, it manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. The company primarily markets its products to equipment OEMs in the semiconductor equipment market in Japan. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.
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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