Critical Review: SKK (NASDAQ:SKK) and TSS (NASDAQ:TSSI)

SKK (NASDAQ:SKK) and TSS (NASDAQ:TSSI) are both small-cap construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Volatility & Risk

SKK has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, TSS has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500.

Valuation and Earnings

This table compares SKK and TSS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SKK	$12.95 million	0.84	-$2.92 million	N/A	N/A
TSS	$245.72 million	1.53	$15.12 million	$0.49	27.39

TSS has higher revenue and earnings than SKK.

Analyst Ratings

This is a summary of recent ratings and target prices for SKK and TSS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SKK	1	0	0	0	1.00
TSS	0	2	2	0	2.50

TSS has a consensus target price of $17.17, indicating a potential upside of 27.92%. Given TSS’s stronger consensus rating and higher possible upside, analysts plainly believe TSS is more favorable than SKK.

Profitability

This table compares SKK and TSS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SKK	N/A	N/A	N/A
TSS	7.14%	25.27%	8.97%

Summary

TSS beats SKK on 10 of the 10 factors compared between the two stocks.

About SKK

SKK Holdings Limited, through its subsidiaries, provides civil engineering services in Singapore. It undertakes subsurface utility works, such as power and telecommunication cable laying works, water pipeline works, and sewer rehabilitation works. The company also offers gas pipeline and sewer construction works; and underground piping, underground utility infrastructure construction and maintenance, horizontal directional drilling, and plumbing and sanitary works. It serves government authorities, utility companies, or contractors. The company was founded in 2013 and is headquartered in Singapore.

About TSS

TSS, Inc. offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc., formerly known as Fortress International Group, Inc., is based in Columbia, United States.