Critical Review: TSS (TSSI) & Its Peers

TSS (NASDAQ:TSSI) is one of 273 public companies in the “IT Services” industry, but how does it weigh in compared to its competitors? We will compare TSS to similar businesses based on the strength of its dividends, risk, valuation, profitability, earnings, institutional ownership and analyst recommendations.

Profitability

This table compares TSS and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TSS	8.45%	21.40%	10.09%
TSS Competitors	-191.45%	-32.71%	-8.33%

Analyst Recommendations

This is a breakdown of current ratings and target prices for TSS and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TSS	0	2	1	0	2.33
TSS Competitors	2009	5685	9515	343	2.47

TSS presently has a consensus price target of $12.00, suggesting a potential upside of 99.00%. As a group, “IT Services” companies have a potential upside of 24.41%. Given TSS’s higher possible upside, equities analysts plainly believe TSS is more favorable than its competitors.

Institutional and Insider Ownership

36.4% of shares of all “IT Services” companies are held by institutional investors. 16.0% of TSS shares are held by company insiders. Comparatively, 20.4% of shares of all “IT Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares TSS and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TSS	$245.72 million	$15.12 million	10.40
TSS Competitors	$3.21 billion	$223.00 million	-20.19

TSS’s competitors have higher revenue and earnings than TSS. TSS is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

TSS has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, TSS’s competitors have a beta of 2.16, indicating that their average stock price is 116% more volatile than the S&P 500.

Summary

TSS competitors beat TSS on 8 of the 13 factors compared.

TSS Company Profile

TSS, Inc. provides data center infrastructure solutions, helping customers plan, equip and deploy data center environments. Its services include design and engineering, equipment procurement, integration, staging, installation and project management. The company works with businesses building or expanding data centers, coordinating technology and deployment services across projects. Its offerings are intended to support data center construction and upgrades, from infrastructure planning through implementation.