Reviewing Mastech Digital (NYSE:MHH) and TSS (NASDAQ:TSSI)

Earnings and Valuation

This table compares Mastech Digital and TSS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mastech Digital	$198.94 million	0.49	-$7.14 million	$0.29	28.31
TSS	$148.14 million	1.53	$70,000.00	$0.24	37.71

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mastech Digital	1.71%	8.20%	6.36%
TSS	3.59%	87.89%	11.84%

Institutional & Insider Ownership

18.4% of Mastech Digital shares are owned by institutional investors. 43.0% of Mastech Digital shares are owned by company insiders. Comparatively, 18.9% of TSS shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Mastech Digital has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, TSS has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Summary

TSS beats Mastech Digital on 7 of the 11 factors compared between the two stocks.

About Mastech Digital

Mastech Digital, Inc., together with its subsidiaries, provides digital transformation IT services to large, medium-sized, and small companies in the United States. The company operates through Data and Analytics Services and IT Staffing Services segments. It offers data management and analytics services, including project-based consulting services in the areas of master data management, enterprise data integration, big data and analytics, and digital transformation by using onsite and offshore resources. In addition, the company provides a range of IT staffing services in the areas of data management and analytics, cloud, mobility, social, automation, business intelligence/data warehousing, web services, enterprise resource planning and customer resource management, and e-business solutions. Further, it offers digital transformation services, including digital learning services; and cloud-based enterprise application across sales, marketing, and customer service organizations. The company provides its services across various industry verticals, such as financial services, retail, healthcare, manufacturing, government, telecommunications, and transportation. The company was formerly known as Mastech Holdings, Inc. and changed its name to Mastech Digital, Inc. in September 2016. Mastech Digital, Inc. was founded in 1986 and is headquartered in Pittsburgh, Pennsylvania.

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.