Osram Licht (OTCMKTS:OSAGF) and NAPCO Security Technologies (NASDAQ:NSSC) Critical Analysis

Osram Licht (OTCMKTS:OSAGF) and NAPCO Security Technologies (NASDAQ:NSSC) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Risk and Volatility

Osram Licht has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, NAPCO Security Technologies has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Profitability

This table compares Osram Licht and NAPCO Security Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Osram Licht	-9.77%	-7.17%	-0.99%
NAPCO Security Technologies	18.70%	28.93%	24.39%

Earnings & Valuation

This table compares Osram Licht and NAPCO Security Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Osram Licht	$3.76 billion	16.53	-$147.08 million	($3.82)	-16.29
NAPCO Security Technologies	$181.62 million	7.43	$43.41 million	$1.04	36.31

NAPCO Security Technologies has lower revenue, but higher earnings than Osram Licht. Osram Licht is trading at a lower price-to-earnings ratio than NAPCO Security Technologies, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

85.1% of NAPCO Security Technologies shares are held by institutional investors. 5.7% of NAPCO Security Technologies shares are held 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Osram Licht and NAPCO Security Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Osram Licht	0	0	0	0	0.00
NAPCO Security Technologies	0	2	6	0	2.75

NAPCO Security Technologies has a consensus price target of $48.67, suggesting a potential upside of 28.88%. Given NAPCO Security Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe NAPCO Security Technologies is more favorable than Osram Licht.

Summary

NAPCO Security Technologies beats Osram Licht on 12 of the 14 factors compared between the two stocks.

About Osram Licht

OSRAM Licht AG provides various lighting products and solutions worldwide. It operates through three segments: Opto Semiconductors, Automotive, and Digital. The company was formerly known as Kyros A AG and changed its name to OSRAM Licht AG in November 2012. OSRAM Licht AG was incorporated in 2012 and is headquartered in Munich, Germany. OSRAM Licht AG operates as a subsidiary of ams-OSRAM AG.

About NAPCO Security Technologies

Napco Security Technologies, Inc. develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company’s alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.