Comparing OSI Systems (OSIS) & ASE Group (ASX)

OSI Systems (NASDAQ: OSIS) and ASE Group (NYSE:ASX) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Dividends

ASE Group pays an annual dividend of $0.13 per share and has a dividend yield of 2.5%. OSI Systems does not pay a dividend. ASE Group pays out 38.2% of its earnings in the form of a dividend.

Insider & Institutional Ownership

5.3% of ASE Group shares are held by institutional investors. 7.6% of OSI Systems shares are held by insiders. Comparatively, 22.9% of ASE Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares OSI Systems and ASE Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
OSI Systems $960.95 million 1.27 $21.07 million $2.99 22.63
ASE Group $9.55 billion 1.12 $826.48 million $0.34 15.26

ASE Group has higher revenue and earnings than OSI Systems. ASE Group 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

OSI Systems has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, ASE Group has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares OSI Systems and ASE Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
OSI Systems -3.10% 13.20% 5.34%
ASE Group 7.77% 11.29% 6.17%

Analyst Recommendations

This is a summary of recent ratings and price targets for OSI Systems and ASE Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
OSI Systems 0 1 3 0 2.75
ASE Group 0 0 0 0 N/A

OSI Systems currently has a consensus target price of $88.75, suggesting a potential upside of 31.19%. Given OSI Systems’ higher probable upside, equities analysts clearly believe OSI Systems is more favorable than ASE Group.

Summary

OSI Systems beats ASE Group on 8 of the 15 factors compared between the two stocks.

OSI Systems Company Profile

OSI Systems, Inc. designs, manufactures, and sells electronic systems and components worldwide. The company's Security segment provides 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. This segment also offers site design, installation, training, and technical support services; and turnkey security screening solutions under the S2 name. Its Healthcare segment provides patient monitoring, diagnostic cardiology, and anesthesia delivery and ventilation systems, as well as related supplies and accessories under the Spacelabs and Statcorp Medical names for use in critical care, emergency, and perioperative areas within hospitals, as well as physicians' offices, medical clinics, and ambulatory surgery centers. The company's Optoelectronics and Manufacturing segment offers optoelectronic devices under the OSI Optoelectronics name for the aerospace and defense, avionics, medical imaging and diagnostics, biochemistry analysis, pharmaceutical, nanotechnology, telecommunications, construction, and homeland security markets. This segment also provides electronics manufacturing services to original equipment manufacturers and end users for medical, automotive, defense, aerospace, industrial, and skin care applications primarily under the OSI Electronics, APlus Products, Briton EMS, Union Four, and Altaflex names; and LCD displays for medical, industrial, and consumer electronics applications, as well as flex circuits and touch panels. In addition, it 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.

ASE Group Company Profile

Advanced Semiconductor Engineering, Inc. provides a range of semiconductors packaging and testing, and electronic manufacturing services (EMS) in the United States, Taiwan, Asia, Europe, and internationally. It operates through Packaging, Testing, EMS, Estate, and Others segments. The company offers packaging services, including flip-chip ball grid array (BGA), flip-chip chip scale package (fcCSP), advanced chip scale packages (aCSP), quad flat packages, thin quad flat packages, bump chip carrier and quad flat no-lead (QFN) packages, advanced QFN packages, plastic BGAs, high-band package on package, and 3D chip packages; stacked die solutions in various package types; and copper wire and silver bonding solutions, as well as module-based solutions. It also provides advanced packages, including aCSP; fcCSP; flip-chip package in package, package on package, and BGA packages; hybrid, advanced single sided substrate, integrated passive device, high-bandwidth, and fan-out wafer-level packages; IC wire bonding packages; system-in-package products (SiP) and modules; and interconnect materials, as well as assembles automotive electronic products. In addition, the company offers a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/MEMS/discrete final testing, and test-related services, as well as drop shipment services. Further, it provides electronic manufacturing services in relation to computers, peripherals, communications, industrial, automotive, and storage and server applications; designs, assembles, manufactures, and sells electronic components and telecommunications equipment motherboards; develops, sells, and leases real estate properties; and produces substrates. The company serves customers in communication, computing, and consumer electronic/industrial/automotive sectors. Advanced Semiconductor Engineering, Inc. was founded in 1984 and is based in Kaohsiung, Taiwan.

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