Comparing Telos (NASDAQ:TLS) & Asure Software (NASDAQ:ASUR)

Telos (NASDAQ:TLSGet Rating) and Asure Software (NASDAQ:ASURGet Rating) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

67.9% of Telos shares are owned by institutional investors. Comparatively, 64.5% of Asure Software shares are owned by institutional investors. 7.2% of Telos shares are owned by company insiders. Comparatively, 6.6% of Asure Software shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Telos and Asure Software’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telos $242.43 million 2.44 -$43.13 million ($0.66) -13.20
Asure Software $76.06 million 1.36 $3.19 million $0.11 47.00

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

Volatility and Risk

Telos has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500. Comparatively, Asure Software has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Telos -18.82% -25.86% -18.77%
Asure Software 2.20% -0.42% -0.16%

Analyst Recommendations

This is a summary of recent recommendations for Telos and Asure Software, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telos 0 2 4 0 2.67
Asure Software 0 0 2 0 3.00

Telos currently has a consensus price target of $17.21, indicating a potential upside of 97.64%. Asure Software has a consensus price target of $12.50, indicating a potential upside of 141.78%. Given Asure Software’s stronger consensus rating and higher possible upside, analysts plainly believe Asure Software is more favorable than Telos.

Summary

Asure Software beats Telos on 8 of the 14 factors compared between the two stocks.

About Telos

(Get Rating)

Telos Corporation, together with its subsidiaries, provides information technology (IT) solutions and services worldwide. It provides Xacta, a premier platform for enterprise cyber risk management and security compliance automation solutions to large commercial and government enterprises; and Telos Ghost, a solution to eliminate cyber-attack 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. The company also offers Telos Automated Message Handling System, a web-based organizational message distribution and management platform for mission-critical communications used by military field operatives; and Telos ID that provides identity trust and digital services through IDTrust360, an enterprise-class digital identity risk platform for extending cloud identity services for mobile and enterprise and custom digital identity services that reduces threats through the integration of advanced technologies that fuse biometrics, credentials, and other identity-centric data used for continuously monitor trust. In addition, it provides secure network services, including secure mobility solutions for business and government that enable remote work and minimize operational and security concern across and beyond the enterprises; and network management and defense services for operating, administrating, and defending complex enterprise networks and defensive cyber operations. It serves to the United States federal government, large commercial businesses, state and local governments, and international customers. The company was founded in 1968 and is headquartered in Ashburn, Virginia.

About Asure Software

(Get Rating)

Asure Software, Inc. provides cloud-based human capital management solutions the United States. It helps various small and mid-sized businesses to build productive teams to help them stay compliant and allocate resources to grow their business. The company's solutions include Asure Payroll & Tax, an integrated cloud-based solution automates regulations associated with payroll and taxes, including wages, benefits, overtime, garnishments, tips, direct deposits, and fair labor standard act, as well as federal, state, and local payroll taxes; Asure (human resource) HR, a cloud-based functionality that handles HR complexities, such as employee self-service that enable employees to access information, pay history, and company documents; and Asure Time & Attendance that provides cost savings and return on investment gains come in the form of strategic use of labor dollars and the elimination of time theft. It also provides HR services that offers services comprising on-demand HR resource library, phone and email support for any HR issues, and compliance and policy updates; support for strategic HR decision making; and HR outsourcing solution, as well as data integration with related third-party systems, such as 401(k), benefits, and insurance provider systems. Asure Software, Inc. was incorporated in 1985 and is headquartered in Austin, Texas.

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