Fair Isaac (NYSE:FICO) & Telos (NASDAQ:TLS) Financial Survey

Fair Isaac (NYSE:FICO) and Telos (NASDAQ:TLS) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Valuation & Earnings

This table compares Fair Isaac and Telos”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fair Isaac	$1.99 billion	12.20	$651.95 million	$34.62	32.49
Telos	$181.93 million	1.83	-$36.55 million	($0.35)	-12.69

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

Volatility and Risk

Fair Isaac has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Telos has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Profitability

This table compares Fair Isaac and Telos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fair Isaac	34.05%	-32.51%	40.61%
Telos	-14.25%	-11.95%	-8.45%

Analyst Recommendations

This is a breakdown of current ratings for Fair Isaac and Telos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fair Isaac	0	5	12	0	2.71
Telos	1	2	3	0	2.33

Fair Isaac currently has a consensus target price of $1,600.93, indicating a potential upside of 42.35%. Telos has a consensus target price of $7.10, indicating a potential upside of 59.91%. Given Telos’ higher possible upside, analysts clearly believe Telos is more favorable than Fair Isaac.

Institutional & Insider Ownership

85.8% of Fair Isaac shares are held by institutional investors. Comparatively, 62.1% of Telos shares are held by institutional investors. 3.0% of Fair Isaac shares are held by company insiders. Comparatively, 14.9% of Telos shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Fair Isaac beats Telos on 11 of the 14 factors compared between the two stocks.

About Fair Isaac

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. It offers FICO Customer Analytics, FICO Responsible AI, FICO Advisors, FICO Business Outcome Simulator, FICO Forecaster, FICO TRIAD Customer Manager, FICO Blaze Advisor, FICO Xpress Optimization, FICO Falcon Fraud Manager, FICO Analytics Workbench, FICO Data Orchestrator, FICO DMP Streaming, FICO Decision Optimizer, and FICO Strategy Director, as well as software implementation and configuration services. The company markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.

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.