Analyzing First Solar (NASDAQ:FSLR) & OSI Systems (NASDAQ:OSIS)

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

Risk & Volatility

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

Analyst Ratings

This is a summary of current recommendations and price targets for First Solar and OSI Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	0	1	24	2	3.04
OSI Systems	0	1	5	0	2.83

First Solar currently has a consensus target price of $276.38, suggesting a potential upside of 77.86%. OSI Systems has a consensus target price of $212.00, suggesting a potential upside of 4.81%. Given First Solar’s stronger consensus rating and higher probable upside, equities research analysts plainly believe First Solar is more favorable than OSI Systems.

Valuation and Earnings

This table compares First Solar 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
First Solar	$3.32 billion	5.01	$830.78 million	$11.61	13.38
OSI Systems	$1.54 billion	2.21	$128.15 million	$7.77	26.03

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.

Insider and Institutional Ownership

92.1% of First Solar shares are held by institutional investors. Comparatively, 89.2% of OSI Systems shares are held by institutional investors. 0.6% of First Solar shares are held by insiders. Comparatively, 5.2% of OSI Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

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

Summary

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

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.

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.