Telos (NASDAQ:TLS – Get Free Report) and Endava (NYSE:DAVA – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Volatility & Risk
Telos has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Endava has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and target prices for Telos and Endava, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Telos | 0 | 3 | 2 | 0 | 2.40 |
| Endava | 0 | 7 | 3 | 0 | 2.30 |
Valuation and Earnings
This table compares Telos and Endava”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Telos | $108.27 million | 2.63 | -$52.52 million | ($0.75) | -5.16 |
| Endava | $932.88 million | 0.78 | $21.56 million | $0.38 | 32.25 |
Endava has higher revenue and earnings than Telos. Telos is trading at a lower price-to-earnings ratio than Endava, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
62.1% of Telos shares are owned by institutional investors. Comparatively, 62.2% of Endava shares are owned by institutional investors. 14.9% of Telos shares are owned by company insiders. Comparatively, 18.8% of Endava shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Telos and Endava’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% |
| Endava | 2.33% | 3.59% | 2.35% |
Summary
Endava beats Telos on 12 of the 14 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 Endava
Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services. The company also provides automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, telemetry and monitoring, organizational optimization, and transaction advisory services. Endava plc was founded in 2000 and is headquartered in London, the United Kingdom.
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