Telos (NASDAQ:TLS – Get Free Report) and Datasea (NASDAQ:DTSS – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Institutional & Insider Ownership
62.1% of Telos shares are held by institutional investors. Comparatively, 82.1% of Datasea shares are held by institutional investors. 14.9% of Telos shares are held by company insiders. Comparatively, 50.7% of Datasea shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations for Telos and Datasea, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Telos | 1 | 3 | 2 | 0 | 2.17 |
| Datasea | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Telos and Datasea’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Telos | -47.55% | -36.19% | -28.00% |
| Datasea | -7.10% | -155.68% | -76.04% |
Earnings & Valuation
This table compares Telos and Datasea”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Telos | $108.27 million | 4.92 | -$52.52 million | ($0.77) | -9.51 |
| Datasea | $71.62 million | 0.22 | -$5.09 million | ($0.89) | -2.19 |
Datasea has lower revenue, but higher earnings than Telos. Telos is trading at a lower price-to-earnings ratio than Datasea, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Telos has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Datasea has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.
Summary
Telos beats Datasea on 9 of the 14 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 Datasea
Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.
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