Telos (NASDAQ:TLS) versus ARB IOT Group (NASDAQ:ARBB) Financial Comparison

Telos (NASDAQ:TLS) and ARB IOT Group (NASDAQ:ARBB) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Risk & Volatility

Telos has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, ARB IOT Group has a beta of 3.42, indicating that its stock price is 242% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Telos and ARB IOT Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telos	0	3	3	0	2.50
ARB IOT Group	0	0	1	0	3.00

Telos presently has a consensus target price of $5.00, indicating a potential upside of 38.12%. ARB IOT Group has a consensus target price of $8.00, indicating a potential upside of 1,432.57%. Given ARB IOT Group’s stronger consensus rating and higher possible upside, analysts plainly believe ARB IOT Group is more favorable than Telos.

Valuation and Earnings

This table compares Telos and ARB IOT Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telos	$145.38 million	1.79	-$34.42 million	($0.44)	-8.23
ARB IOT Group	$51.86 million	0.27	$5.53 million	N/A	N/A

ARB IOT Group has lower revenue, but higher earnings than Telos.

Profitability

This table compares Telos and ARB IOT Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telos	-22.22%	-22.69%	-17.72%
ARB IOT Group	N/A	N/A	N/A

Institutional & Insider Ownership

62.1% of Telos shares are owned by institutional investors. Comparatively, 14.8% of ARB IOT Group shares are owned by institutional investors. 12.4% of Telos shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

ARB IOT Group beats Telos on 7 of the 12 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 ARB IOT Group

ARB IOT Group Limited, through its subsidiaries, provides Internet of Things (IoT) system solutions, and system integration and support services in Malaysia. It offers IoT smart home and building solutions, such as design, procurement, and provision of smart home products and devices; integration services; and electrical wire installation and home data network setup for homeowners, as well as provides smart building solutions, including design, procurement, installation, testing, pre-commissioning and commissioning of various IoT systems, solutions, and devices; and integration of automated systems for smart buildings, including installation of wire and wireless, and mechatronic works for property developers and contractors. The company offers IoT smart agriculture solutions, such as designing the layout of the smart farm for the application and integration of IoT in farming and hydroponics, which includes the procurement of sensors and surveillance cameras, as well as other hardware for farm; designing of software to enable transfer of data from the smart farm to a cloud server, which can then be accessed remotely through smart devices; installing, testing, and commissioning of the hardware and software; and after-sales services comprising data analytics and periodic maintenance services. In addition, it provides IoT system development solutions, including procuring, supplying, and delivering industrial building systems for construction projects; and IoT gadget distribution solutions comprising supply chain and distribution of smart phones, accessories, and ICT and IoT products, as well as provides shipping tracking and status updates, customer care line, online chat support, digital marketing, pre-installation, and warranty services. The company was incorporated in 2022 and is based in Kuala Lumpur, Malaysia. ARB IOT Group Limited is a subsidiary of ARB Berhad.