TSS (NASDAQ:TSSI) vs. Babcock International Group (OTCMKTS:BCKIY) Critical Survey

TSS (NASDAQ:TSSI) and Babcock International Group (OTCMKTS:BCKIY) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Risk & Volatility

TSS has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, Babcock International Group has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for TSS and Babcock International Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TSS	0	0	1	0	3.00
Babcock International Group	0	0	0	1	4.00

TSS presently has a consensus target price of $20.50, indicating a potential upside of 11.72%. Given TSS’s higher possible upside, analysts clearly believe TSS is more favorable than Babcock International Group.

Earnings and Valuation

This table compares TSS and Babcock International Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TSS	$148.00 million	3.14	$5.98 million	$0.36	50.97
Babcock International Group	$6.16 billion	1.31	$315.25 million	N/A	N/A

Babcock International Group has higher revenue and earnings than TSS.

Profitability

This table compares TSS and Babcock International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TSS	3.43%	107.01%	8.66%
Babcock International Group	N/A	N/A	N/A

Summary

TSS beats Babcock International Group on 7 of the 11 factors compared between the two stocks.

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.

About Babcock International Group

Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land, and Aviation. It designs, procures, operates, and manages critical utility and process equipment; offers asset management, defense and maritime training, information and intelligence, equipment and system, and facilities and infrastructure services, as well as naval platforms; and designs, manufactures, and provides through-life support for mechanical and electrical systems and equipment. The company also offers naval architecture, engineering, and project management services; submarines and complex engineering services in support of various decommissioning programs and projects, training and operation support, new build program management, and design and installation; critical vehicle fleet management, and equipment support and training services for military and civil customers; and designs, assesses, manufactures, installs, maintains, and decommissions vehicles for police, fire and ambulance, civil service, military, and other security-focused organizations. In addition, it provides plain line track renewal services; and engineering services for track projects, signaling, telecommunications, and on-track plants. Further, the company offers critical engineering services to defense and civil customers, including pilot training, equipment support, and airbase management, as well as operates aviation fleets that provide delivering emergency services. The company was founded in 1891 and is headquartered in London, the United Kingdom.