ServiceTitan (NASDAQ:TTAN) versus Telos (NASDAQ:TLS) Critical Review

ServiceTitan (NASDAQ:TTAN) and Telos (NASDAQ:TLS) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares ServiceTitan and Telos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ServiceTitan	-12.12%	-5.65%	-4.93%
Telos	-8.13%	-2.60%	-1.80%

Valuation & Earnings

This table compares ServiceTitan and Telos”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServiceTitan	$960.97 million	6.74	-$159.85 million	($1.36)	-49.33
Telos	$164.80 million	1.90	-$36.55 million	($0.21)	-19.95

Telos has lower revenue, but higher earnings than ServiceTitan. ServiceTitan is trading at a lower price-to-earnings ratio than Telos, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for ServiceTitan and Telos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServiceTitan	1	2	14	0	2.76
Telos	1	3	2	1	2.43

ServiceTitan presently has a consensus target price of $96.38, suggesting a potential upside of 43.65%. Telos has a consensus target price of $6.50, suggesting a potential upside of 55.13%. Given Telos’ higher possible upside, analysts plainly believe Telos is more favorable than ServiceTitan.

Volatility and Risk

ServiceTitan has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Telos has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Institutional and Insider Ownership

62.1% of Telos shares are owned by institutional investors. 39.9% of ServiceTitan shares are owned by insiders. Comparatively, 14.9% of Telos shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Telos beats ServiceTitan on 10 of the 15 factors compared between the two stocks.

About ServiceTitan

ServiceTitan, Inc. engages in the collection of field service activities required to install, maintain, and service the infrastructure and systems of residences and commercial buildings. The company was founded by Ara Mahdessian and Vahe Kuzoyan on June 8, 2008 and is headquartered in Glendale, CA.

About Telos

Telos Corporation, together with its subsidiaries, provides cyber, cloud, and enterprise security solutions worldwide. The company operates in two segments, Security Solutions and Secure Networks. It provides Xacta, a platform for enterprise cyber risk management and security compliance automation; and consulting, assessment and compliance, engineering and evaluation, operations, and penetration testing services. The company also offers Telos Automated Message Handling System, a web-based organizational message distribution and management for mission-critical communications used by military field operatives; and Telos Advanced Cyber Analytics solution, which is a threat feed source of global Internet Protocol addresses known to engage in potentially malicious activity, including mass scanning and generic opportunistic attacks; and Telos Ghost, a solution to eliminate cyberattack surfaces by obfuscating and encrypting data, masking user identity and location, and hiding network resources, as well as provides security and privacy for intelligence gathering, cyber threat protection, securing critical infrastructure, and protecting communications and applications. In addition, the company provides IDTrust360, an enterprise digital trusted identity risk platform for extending flexible hybrid cloud identity services; and ONYX, a touchless fingerprint biometric solution for mobile devices. Further, it offers secure mobility solutions that enable remote work and minimize operational and security concerns across and beyond the enterprise; and network management and defense services for operating, administrating, and defending complex enterprise networks and services for defensive cyber operations. It serves the United States federal government, large commercial businesses, state and local governments, and international customers. Telos Corporation was founded in 1968 and is headquartered in Ashburn, Virginia.