NXP Semiconductors (NASDAQ:NXPI) and OSI Systems (NASDAQ:OSIS) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

77.5% of NXP Semiconductors shares are held by institutional investors. Comparatively, 98.6% of OSI Systems shares are held by institutional investors. 8.6% of OSI Systems shares are held 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.

Volatility & Risk

NXP Semiconductors has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, OSI Systems has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Dividends

NXP Semiconductors pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. OSI Systems does not pay a dividend. NXP Semiconductors pays out 16.8% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
NXP Semiconductors 23.47% 15.52% 8.50%
OSI Systems 3.22% 14.93% 5.53%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NXP Semiconductors and OSI Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NXP Semiconductors 1 7 12 1 2.62
OSI Systems 0 1 3 0 2.75

NXP Semiconductors presently has a consensus price target of $100.13, suggesting a potential upside of 14.63%. OSI Systems has a consensus price target of $95.00, suggesting a potential upside of 10.40%. Given NXP Semiconductors’ higher probable upside, research analysts plainly believe NXP Semiconductors is more favorable than OSI Systems.

Earnings & Valuation

This table compares NXP Semiconductors and OSI Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NXP Semiconductors $9.41 billion 3.05 $2.21 billion $5.94 14.71
OSI Systems $1.09 billion 1.43 -$29.12 million $3.61 23.84

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

Summary

NXP Semiconductors beats OSI Systems on 11 of the 17 factors compared between the two stocks.

NXP Semiconductors Company Profile

NXP Semiconductors N.V., a semiconductor company, provides high performance mixed signal solutions for radio frequency (RF), analog, power management, interface, security, and digital processing products worldwide. The company offers products for audio and visual head-end unit applications, such as single-chip radio solutions, multi-standard radios, audio amplifiers and power analog products, and i.MX applications processors; in-vehicle networking products; two-way secure entry products; various sensors and microcontrollers; power management solutions; battery cell controllers; and solutions for radar, vision, vehicle-to-vehicle, and vehicle-to-infrastructure systems. It also provides secure identification solutions, such as passive RF connectivity devices; microcontroller devices; and secure real-time operating system software products to facilitate the encryption-decryption of data, and the interaction with the reader infrastructure systems. In addition, the company delivers semiconductor-based technologies for connected devices comprising microcontrollers, secure mobile transaction solutions, and various connectivity solutions; and offers digital networking processors, secure interface and system management products, high-performance RF power-amplifiers, and smart antennae solutions. Its product solutions are used in a range of application areas, including automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer, computing, and software solutions for mobile phones. The company markets its products to various original equipment manufacturers, original design manufacturers, contract manufacturers, and distributors. The company was formerly known as KASLION Acquisition B.V and changed its name to NXP Semiconductors N.V. in May 2010. NXP Semiconductors N.V. was founded in 2006 and is headquartered in Eindhoven, the Netherlands.

OSI Systems Company Profile

OSI Systems, Inc. designs, manufactures, and sells electronic systems and components worldwide. The company's Security segment offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation detection, and explosive and narcotics trace detection systems under the Rapiscan Systems and AS&E names. It also provides site design, installation, training, and technical support services; and turnkey security screening solutions under the S2 name. The company's Healthcare segment offers patient monitoring, diagnostic cardiology, and anesthesia delivery and ventilation systems, as well as related supplies and accessories under the Spacelabs name for use in critical care, emergency, and perioperative areas within hospitals, as well as physicians' offices, medical clinics, and ambulatory surgery centers. Its Optoelectronics and Manufacturing segment provides optoelectronic devices primarily under the OSI Optoelectronics, OSI LaserDiode, and OSI Laserscan 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 primarily under the OSI Electronics, APlus Products, Altaflex, and PFC names; and LCD displays for medical, industrial, and consumer electronics applications, as well as flex circuits and touch panels. In addition, 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 founded in 1987 and is headquartered in Hawthorne, California.

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