Analyzing Ostin Technology Group (NASDAQ:OST) and Varex Imaging (NASDAQ:VREX)

Ostin Technology Group (NASDAQ:OST – Get Rating) and Varex Imaging (NASDAQ:VREX – Get Rating) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

This table compares Ostin Technology Group and Varex Imaging’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ostin Technology Group	N/A	N/A	N/A
Varex Imaging	3.24%	6.58%	2.97%

Earnings and Valuation

This table compares Ostin Technology Group and Varex Imaging’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ostin Technology Group	$105.42 million	0.16	N/A	N/A	N/A
Varex Imaging	$859.40 million	1.03	$30.30 million	$0.70	31.30

Varex Imaging has higher revenue and earnings than Ostin Technology Group.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Ostin Technology Group and Varex Imaging, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ostin Technology Group	0	0	0	0	N/A
Varex Imaging	0	1	0	0	2.00

Varex Imaging has a consensus price target of $24.00, indicating a potential upside of 9.54%. Given Varex Imaging’s higher probable upside, analysts clearly believe Varex Imaging is more favorable than Ostin Technology Group.

Insider and Institutional Ownership

0.3% of Ostin Technology Group shares are owned by institutional investors. 44.8% of Ostin Technology Group shares are owned by company insiders. Comparatively, 4.2% of Varex Imaging shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Varex Imaging beats Ostin Technology Group on 6 of the 8 factors compared between the two stocks.

About Ostin Technology Group

(Get Rating)

Ostin Technology Group Co., Ltd. designs, develops, and manufactures thin-film transistor liquid crystal display (TFT-LCD) modules and polarizers in China. The company offers TFT-LCD solutions for drive IC, TCON board, and power supply applications; back light systems and special modules; LC display modules, touch panel modules, and smart display terminals; and polarizers used in the TFT-LCD display modules. It offers display modules to markets, such as consumer electronics, including AIOs, monitors, laptop computers, and tablets; automotive displays, including dashboard, and navigation and multimedia systems; and outdoor LCD displays, which are used to display multimedia graphics, such as company advertisements, promotions, scoreboards, and traffic signs. The company sells its products directly to customers, as well as to customers' designated system integrators. Ostin Technology Group Co., Ltd. was founded in 2010 and is based in Nanjing, China with manufacturing facilities in China.

About Varex Imaging

(Get Rating)

Varex Imaging Corp. engages in the design, manufacture, and sale of imaging components. It operates through the Medical and Industrial segments. The Medical segment delivers and services x-ray imaging components, including X-ray tubes, digital detectors, high voltage connectors, image-processing software and workstations, and three-dimensional reconstruction software. The Industrial segment offers x-ray imaging products for use in security, and nondestructive testing and inspection applications. The company was founded in July 2016 and is headquartered in Salt Lake City, UT.