Head-To-Head Comparison: Telos (NASDAQ:TLS) versus ServiceTitan (NASDAQ:TTAN)

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

Analyst Ratings

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

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

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

Profitability

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

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

Institutional and Insider Ownership

62.1% of Telos shares are held by institutional investors. 14.9% of Telos shares are held by insiders. Comparatively, 39.9% of ServiceTitan shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

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

Telos has higher earnings, but lower revenue 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.

Volatility and Risk

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

Summary

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

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.

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.