ICZOOM Group (NASDAQ:IZM) versus OSI Systems (NASDAQ:OSIS) Critical Contrast

ICZOOM Group (NASDAQ:IZM) and OSI Systems (NASDAQ:OSIS) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ICZOOM Group and OSI Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICZOOM Group	1	0	0	0	1.00
OSI Systems	0	1	7	0	2.88

OSI Systems has a consensus price target of $268.63, suggesting a potential downside of 5.06%. Given OSI Systems’ stronger consensus rating and higher possible upside, analysts clearly believe OSI Systems is more favorable than ICZOOM Group.

Valuation & Earnings

This table compares ICZOOM Group and OSI Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICZOOM Group	$187.05 million	0.11	$1.19 million	N/A	N/A
OSI Systems	$1.71 billion	2.80	$149.64 million	$8.83	32.04

OSI Systems has higher revenue and earnings than ICZOOM Group.

Volatility & Risk

ICZOOM Group has a beta of 1.33, suggesting that its share price is 33% more 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 ICZOOM Group and OSI Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ICZOOM Group	N/A	N/A	N/A
OSI Systems	8.68%	18.25%	7.51%

Insider and Institutional Ownership

34.3% of ICZOOM Group shares are held by institutional investors. Comparatively, 89.2% of OSI Systems shares are held by institutional investors. 4.3% of OSI Systems shares are held by company 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.

Summary

OSI Systems beats ICZOOM Group on 12 of the 12 factors compared between the two stocks.

About ICZOOM Group

ICZOOM Group Inc., together with its subsidiaries, sells electronic component products to customers in Hong Kong and the People's Republic of China. The company provides semiconductor products, including various integrated circuit, discretes, passive components, and optoelectronics; and equipment, tools, and other electronic component products comprising various electromechanical, maintenance, repair and operations, and various design tools. Its products are used by small and medium-sized enterprises in the consumer electronic industry, Internet of Things, automotive electronics, and industry control segment. The company sells its products through its online platform. It also offers customs clearance, temporary warehousing, logistic, and shipping services. The company was formerly known as Horizon Business Intelligence Co., Limited and changed its name to ICZOOM Group Inc. in May 2018. ICZOOM Group Inc. was founded in 2012 and is headquartered in Shenzhen, the People's Republic of China.

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.