Analyzing Fujitsu (OTCMKTS:FJTSY) & Telos (NASDAQ:TLS)

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

Analyst Recommendations

This is a breakdown of current recommendations for Telos and Fujitsu, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telos	1	2	2	0	2.20
Fujitsu	0	2	0	0	2.00

Telos currently has a consensus price target of $7.38, suggesting a potential upside of 69.15%. Given Telos’ stronger consensus rating and higher probable upside, analysts plainly believe Telos is more favorable than Fujitsu.

Institutional & Insider Ownership

62.1% of Telos shares are held by institutional investors. Comparatively, 0.1% of Fujitsu shares are held by institutional investors. 14.9% of Telos shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Telos and Fujitsu”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telos	$164.80 million	2.04	-$36.55 million	($0.50)	-8.72
Fujitsu	$23.31 billion	1.81	$1.45 billion	$0.45	53.36

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Telos	-22.17%	-20.30%	-14.89%
Fujitsu	N/A	N/A	N/A

Risk and Volatility

Telos has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Fujitsu has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

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 Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.