Procore Technologies (NYSE:PCOR) and Telos (NASDAQ:TLS) Financial Survey

Telos (NASDAQ:TLS) and Procore Technologies (NYSE:PCOR) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Telos and Procore Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telos	1	2	3	1	2.57
Procore Technologies	1	2	16	1	2.85

Telos currently has a consensus price target of $7.10, suggesting a potential upside of 45.79%. Procore Technologies has a consensus price target of $70.44, suggesting a potential upside of 16.29%. Given Telos’ higher possible upside, research analysts plainly believe Telos is more favorable than Procore Technologies.

Earnings and Valuation

This table compares Telos and Procore Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telos	$164.80 million	2.21	-$36.55 million	($0.21)	-23.19
Procore Technologies	$1.32 billion	6.96	-$100.78 million	($0.26)	-232.96

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

Profitability

This table compares Telos and Procore Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telos	-8.13%	-2.60%	-1.80%
Procore Technologies	-2.73%	0.71%	0.41%

Volatility and Risk

Telos has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Procore Technologies has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Insider & Institutional Ownership

62.1% of Telos shares are held by institutional investors. Comparatively, 81.1% of Procore Technologies shares are held by institutional investors. 14.9% of Telos shares are held by insiders. Comparatively, 16.8% of Procore Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Procore Technologies beats Telos on 9 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 Procore Technologies

Procore Technologies, Inc. engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company’s platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office. The company also provides Workforce Management, that helps contractors to schedule, track, and forecast labor productivity, enhance time management, communication with workforces, and manage profitability on construction projects; Financial Management, which provides customers with visibility into the financial health of their individual construction projects and portfolios, as well as facilitates untethered access to financial data, linking the field, and the office in real-time; and Construction Intelligence, that allows customers to capture, manage, and learn from data for project and portfolio reporting, analytics, and artificial intelligence-guided workflows, as well as to monitor projects and drive informed decision-making for business needs. It serves owners, general contractors, and specialty contractors operating in the commercial, residential, industrial, and infrastructure segments of the construction industry. The company allow users to access its products on computers, smartphones, and tablets through any web browser or from its mobile application available for iOS and Android platforms through its direct sales team. Procore Technologies, Inc. was incorporated in 2002 and is headquartered in Carpinteria, California.