Head to Head Review: First Solar (NASDAQ:FSLR) & OSI Systems (NASDAQ:OSIS)

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

Insider and Institutional Ownership

89.2% of OSI Systems shares are owned by institutional investors. Comparatively, 92.1% of First Solar shares are owned by institutional investors. 5.2% of OSI Systems shares are owned by insiders. Comparatively, 0.6% of First Solar shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares OSI Systems and First Solar”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OSI Systems	$1.54 billion	2.31	$128.15 million	$7.77	27.24
First Solar	$3.32 billion	5.15	$830.78 million	$11.61	13.76

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OSI Systems	8.15%	18.22%	7.48%
First Solar	32.41%	17.56%	11.46%

Analyst Recommendations

This is a breakdown of current ratings for OSI Systems and First Solar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OSI Systems	0	0	5	0	3.00
First Solar	0	1	24	2	3.04

OSI Systems presently has a consensus target price of $209.40, indicating a potential downside of 1.07%. First Solar has a consensus target price of $276.38, indicating a potential upside of 72.99%. Given First Solar’s stronger consensus rating and higher possible upside, analysts plainly believe First Solar is more favorable than OSI Systems.

Risk and Volatility

OSI Systems has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, First Solar has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Summary

First Solar beats OSI Systems on 12 of the 15 factors compared between the two stocks.

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.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.