Reviewing Remark (NASDAQ:MARK) & Telos (NASDAQ:TLS)

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

Insider and Institutional Ownership

62.1% of Telos shares are owned by institutional investors. Comparatively, 8.5% of Remark shares are owned by institutional investors. 14.9% of Telos shares are owned by company insiders. Comparatively, 5.8% of Remark shares are owned by company 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 Remark”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telos	$193.71 million	1.71	-$36.55 million	($0.21)	-21.10
Remark	$5.80 million	0.01	-$29.15 million	($0.94)	-0.00

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Telos and Remark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telos	1	2	3	1	2.57
Remark	0	0	0	0	0.00

Telos presently has a consensus target price of $7.10, indicating a potential upside of 60.23%. Given Telos’ stronger consensus rating and higher probable upside, equities analysts clearly believe Telos is more favorable than Remark.

Profitability

This table compares Telos and Remark’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%
Remark	-790.22%	N/A	-332.21%

Risk and Volatility

Telos has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Remark has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Summary

Telos beats Remark on 11 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 Remark

Remark Holdings, Inc. provides AI-powered analytics, computer vision, and smart agent solutions. The company operates a data and AI software platform that offers AI-based computer vision products, computing devices, and software-as-a-service solutions; and Smart Safety Platform, a software solution that uses computer vision to detect persons, objects, and behavior in video feeds, as well as provides Remark AI Thermal kits and rPads products and services. It serves retail, construction, public safety, workplace safety, and public sectors. The company was formerly known as Remark Media, Inc. and changed its name to Remark Holdings, Inc. in April 2017. Remark Holdings, Inc. is headquartered in Las Vegas, Nevada.