OSIS vs SAIC

For growth investors, OSI Systems, Inc.

(OSIS) is the stronger pick with 11. 3% revenue growth year-over-year, versus -2. 9% for Science Applications International Corporation (SAIC). Science Applications International Corporation (SAIC) offers the better valuation at 12. 3x trailing P/E (9. 3x forward), making it the more compelling value choice. Analysts rate OSI Systems, Inc. (OSIS) a "Buy" — based on 17 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Science Applications International Corporation (SAIC) is the cheapest at 12.

3x versus OSI Systems, Inc. at 27. 6x. On forward P/E, Science Applications International Corporation is actually cheaper at 9. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Science Applications International Corporation wins at 0. 56x versus OSI Systems, Inc. 's 1. 39x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, OSI Systems, Inc.

(OSIS) delivered a total return of +148. 3%, compared to +14. 8% for Science Applications International Corporation (SAIC). Over 10 years, the gap is even starker: OSIS returned +377. 5% versus SAIC's +104. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Science Applications International Corporation (SAIC) is the lower-risk stock at 0.

26β versus OSI Systems, Inc. 's 1. 44β — meaning OSIS is approximately 445% more volatile than SAIC relative to the S&P 500. On balance sheet safety, Science Applications International Corporation (SAIC) carries a lower debt/equity ratio of 14% versus 72% for OSI Systems, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), OSI Systems, Inc.

(OSIS) is pulling ahead at 11. 3% versus -2. 9% for Science Applications International Corporation (SAIC). On earnings-per-share growth, the picture is similar: OSI Systems, Inc. grew EPS 18. 0% year-over-year, compared to 7. 4% for Science Applications International Corporation. Over a 3-year CAGR, OSIS leads at 13. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

OSI Systems, Inc.

(OSIS) is the more profitable company, earning 8. 7% net margin versus 4. 9% for Science Applications International Corporation — meaning it keeps 8. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OSIS leads at 12. 7% versus 7. 1% for SAIC. At the gross margin level — before operating expenses — OSIS leads at 34. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Science Applications International Corporation (SAIC) is the more undervalued stock at a PEG of 0. 56x versus OSI Systems, Inc. 's 1. 39x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Science Applications International Corporation (SAIC) trades at 9. 3x forward P/E versus 23. 0x for OSI Systems, Inc. — 13. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OSIS: 22. 2% to $293. 50.

In this comparison, SAIC (1.

6% yield) pays a dividend. OSIS does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Science Applications International Corporation (SAIC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

26), 1. 6% yield, +104. 4% 10Y return). Both have compounded well over 10 years (SAIC: +104. 4%, OSIS: +377. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: OSIS is a small-cap quality compounder stock; SAIC is a small-cap deep-value stock. SAIC pays a dividend while OSIS does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.