Comparing One Stop Systems (NASDAQ:OSS) & Brother Industries (OTCMKTS:BRTHY)

One Stop Systems (NASDAQ:OSS) and Brother Industries (OTCMKTS:BRTHY) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Volatility and Risk

One Stop Systems has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Brother Industries has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.

Profitability

This table compares One Stop Systems and Brother Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
One Stop Systems	-26.36%	-47.56%	-34.67%
Brother Industries	6.24%	7.88%	5.89%

Insider and Institutional Ownership

32.7% of One Stop Systems shares are owned by institutional investors. 10.8% of One Stop Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for One Stop Systems and Brother Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
One Stop Systems	0	0	1	1	3.50
Brother Industries	0	0	0	0	0.00

One Stop Systems presently has a consensus price target of $4.50, suggesting a potential upside of 13.18%. Given One Stop Systems’ stronger consensus rating and higher possible upside, research analysts clearly believe One Stop Systems is more favorable than Brother Industries.

Earnings and Valuation

This table compares One Stop Systems and Brother Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
One Stop Systems	$54.69 million	1.57	-$13.63 million	($0.67)	-5.93
Brother Industries	$5.76 billion	0.78	$361.54 million	$2.80	12.47

Brother Industries has higher revenue and earnings than One Stop Systems. One Stop Systems is trading at a lower price-to-earnings ratio than Brother Industries, indicating that it is currently the more affordable of the two stocks.

Summary

One Stop Systems beats Brother Industries on 8 of the 15 factors compared between the two stocks.

About One Stop Systems

One Stop Systems, Inc. engages in the design, manufacture, and marketing of high-performance compute, high speed storage hardware and software, switch fabrics, and systems for edge deployments in the United States and internationally. The company's systems are built using the central processing unit, graphical processing unit, high-speed switch fabrics, and flash storage technologies. It provides custom servers, data acquisition platforms, compute accelerators, solid-state storage arrays, and system I/O expansion systems, as well as edge optimized industrial and panel PCs, tablets, and handheld compute devices. The company also offers ruggedized mobile tablets and handhelds that meet the specialized requirement for devices deployed at the edge in a diverse set of environmental conditions. It sells its products to multinational companies, governmental agencies, military contractors, military services, and technology providers through its website, web store, direct sales team, and original equipment manufacturer focused sales, as well as through a network of resellers and distributors. The company was founded in 1998 and is headquartered in Escondido, California.

About Brother Industries

Brother Industries, Ltd. manufactures and sells communications and printing equipment in Japan, the Americas, Europe, Asia, Oceania, the Middle East, Africa, and internationally. It operates through Printing & Solutions, Machinery, Domino, Nissei, Personal & Home, and Network & Contents segments. The Printing & Solutions segment offers inkjet printers; all-in-one black-and-white and color laser printers; scanners; and labeling systems, and label and mobile printers. The Machinery segment offers industrial sewing machines, machine tools, and garment printers. The Domino segment offers coding and marking equipment, and digital printing equipment. The Nissei segment provides gearmotors, high stiffness reducers, and gears. The Personal & Home segment provides sewing and cutting machines, sewing and embroidery machines, and commercial embroidery machines. The Network & Contents segment provides online karaoke systems and applications for smartphones/tablets, as well as content, nursing care, and video viewing services; and manages karaoke clubs. The company was formerly known as Nippon Sewing Machine Manufacturing Co. and changed its name to Brother Industries, Ltd. in 1962. Brother Industries, Ltd. was founded in 1908 and is headquartered in Nagoya, Japan.