Telos (NASDAQ:TLS – Get Free Report) and PagerDuty (NYSE:PD – Get Free Report) are both small-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Earnings & Valuation
This table compares Telos and PagerDuty”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Telos | $164.80 million | 3.28 | -$36.55 million | ($0.12) | -61.25 |
| PagerDuty | $492.55 million | 2.54 | $173.85 million | $2.00 | 7.97 |
PagerDuty has higher revenue and earnings than Telos. Telos is trading at a lower price-to-earnings ratio than PagerDuty, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Telos has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, PagerDuty has a beta of 0.96, indicating 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. Comparatively, 97.3% of PagerDuty shares are owned by institutional investors. 14.9% of Telos shares are owned by insiders. Comparatively, 6.0% of PagerDuty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Telos and PagerDuty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Telos | -4.66% | 4.17% | 2.84% |
| PagerDuty | 37.50% | 18.52% | 4.84% |
Analyst Recommendations
This is a summary of recent recommendations for Telos and PagerDuty, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Telos | 1 | 4 | 3 | 0 | 2.25 |
| PagerDuty | 2 | 5 | 3 | 0 | 2.10 |
Telos currently has a consensus price target of $7.60, indicating a potential upside of 3.40%. PagerDuty has a consensus price target of $12.81, indicating a potential downside of 19.60%. Given Telos’ stronger consensus rating and higher possible upside, equities analysts clearly believe Telos is more favorable than PagerDuty.
Summary
PagerDuty beats Telos on 8 of the 13 factors compared between the two stocks.
About Telos
Telos Corporation is a cybersecurity and information technology company serving government agencies and commercial organizations. Its offerings include cybersecurity services, secure network and cloud solutions, identity management, and technology consulting. The company’s products include the Xacta platform, which helps organizations manage cybersecurity risk and compliance, and Telos ID, which provides identity verification and authentication services. Telos also supports secure communications and mobility for customers with demanding security requirements.
About PagerDuty
PagerDuty, Inc. provides cloud-based software for managing digital operations. Its PagerDuty Operations Cloud platform helps organizations detect and respond to technology incidents, coordinate response teams, automate operational workflows and reduce disruptions to digital services. The company’s products support incident management, AIOps, automation and customer service operations. They are used by IT, engineering, security and support teams to monitor systems, prioritize alerts and coordinate work across people and technology.
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