Telos (NASDAQ:TLS – Get Free Report) and Draganfly (NASDAQ:DPRO – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
Analyst Recommendations
This is a summary of current ratings for Telos and Draganfly, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Telos | 1 | 2 | 3 | 0 | 2.33 |
| Draganfly | 0 | 0 | 2 | 2 | 3.50 |
Telos presently has a consensus target price of $7.10, suggesting a potential upside of 50.11%. Draganfly has a consensus target price of $14.50, suggesting a potential upside of 246.06%. Given Draganfly’s stronger consensus rating and higher probable upside, analysts plainly believe Draganfly is more favorable than Telos.
Volatility & Risk
Profitability
This table compares Telos and Draganfly’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Telos | -14.25% | -11.95% | -8.45% |
| Draganfly | -292.88% | -27.88% | -26.20% |
Insider and Institutional Ownership
62.1% of Telos shares are held by institutional investors. Comparatively, 10.4% of Draganfly shares are held by institutional investors. 14.9% of Telos shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Telos and Draganfly”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Telos | $181.93 million | 1.95 | -$36.55 million | ($0.35) | -13.51 |
| Draganfly | $5.53 million | 26.05 | -$16.45 million | ($0.98) | -4.28 |
Draganfly has lower revenue, but higher earnings than Telos. Telos is trading at a lower price-to-earnings ratio than Draganfly, indicating that it is currently the more affordable of the two stocks.
Summary
Telos beats Draganfly on 8 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 Draganfly
Draganfly Inc. develops, manufactures, and sells cutting-edge unmanned and remote data collection and analysis platforms and systems in the United States and Canada. The company offers quadcopters, fixed-wing aircraft, ground-based robots, handheld controllers, and flight training, as well as software used for tracking, live streaming, and data collection. It also operates a health/telehealth platform that is a set of technologies that remotely detect various biometrics, such as heart rate, oxygen saturation, and blood pressure. In addition, the company provides sanitary spraying services to indoor and outdoor public gathering spaces, including sport stadiums and fields, and custom engineering, training, consulting, flight, and geographic information systems data services. It serves public safety, agriculture, industrial inspections, and mapping and surveying markets. Draganfly Inc. was founded in 1998 and is headquartered in Saskatoon, Canada.
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