Contrasting Telos (NASDAQ:TLS) and Dynatrace (NYSE:DT)

Telos (NASDAQ:TLS) and Dynatrace (NYSE:DT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Risk and Volatility

Telos has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Telos and Dynatrace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telos	-49.19%	-33.16%	-26.52%
Dynatrace	28.47%	9.08%	5.90%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telos	$108.27 million	1.93	-$52.52 million	($0.75)	-3.80
Dynatrace	$1.70 billion	9.46	$483.68 million	$1.60	33.29

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

Institutional & Insider Ownership

62.1% of Telos shares are held by institutional investors. Comparatively, 94.3% of Dynatrace shares are held by institutional investors. 14.9% of Telos shares are held by company insiders. Comparatively, 0.6% of Dynatrace shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Telos and Dynatrace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telos	0	3	2	0	2.40
Dynatrace	0	7	15	1	2.74

Telos presently has a consensus target price of $3.94, suggesting a potential upside of 38.16%. Dynatrace has a consensus target price of $62.26, suggesting a potential upside of 16.90%. Given Telos’ higher probable upside, analysts clearly believe Telos is more favorable than Dynatrace.

Summary

Dynatrace beats Telos on 12 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 Dynatrace

Dynatrace, Inc. provides a security platform for multicloud environments in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates Dynatrace, a security platform, which provides application and microservices monitoring, runtime application security, infrastructure monitoring, log management and analytics, digital experience monitoring, digital business analytics, and cloud automation. Its platform allows its customers to modernize and automate IT operations, delivers software, and enhance user experiences. In addition, the company offers implementation, consulting, and training services. It markets its products through a combination of direct sales team and a network of partners, including resellers, system integrators, and managed service providers. It serves customers in various industries comprising banking, financial services, government, insurance, retail and wholesale, transportation, and software. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.