SecureAlert (OTCMKTS:TRCK – Get Free Report) and Telos (NASDAQ:TLS – Get Free Report) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Insider & Institutional Ownership
5.8% of SecureAlert shares are held by institutional investors. Comparatively, 62.1% of Telos shares are held by institutional investors. 11.1% of SecureAlert shares are held by company insiders. Comparatively, 14.9% of Telos shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares SecureAlert and Telos’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SecureAlert | -3.91% | -11.46% | 3.48% |
| Telos | -20.47% | -26.12% | -19.88% |
Volatility & Risk
Analyst Ratings
This is a breakdown of current ratings for SecureAlert and Telos, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SecureAlert | 0 | 0 | 0 | 0 | 0.00 |
| Telos | 1 | 3 | 2 | 0 | 2.17 |
Telos has a consensus price target of $7.75, suggesting a potential upside of 42.46%. Given Telos’ stronger consensus rating and higher probable upside, analysts plainly believe Telos is more favorable than SecureAlert.
Valuation and Earnings
This table compares SecureAlert and Telos”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SecureAlert | $36.89 million | 0.08 | -$3.08 million | ($0.12) | -2.08 |
| Telos | $108.27 million | 3.71 | -$52.52 million | ($0.41) | -13.27 |
SecureAlert has higher earnings, but lower revenue than Telos. Telos is trading at a lower price-to-earnings ratio than SecureAlert, indicating that it is currently the more affordable of the two stocks.
Summary
Telos beats SecureAlert on 8 of the 14 factors compared between the two stocks.
About SecureAlert
Track Group, Inc., together with its subsidiaries, designs, manufactures, and markets location tracking devices in the United States, Latin America, and internationally. The company's products include ReliAlert XC4, a GPS monitoring device; and ReliAlert XC 3, which enables agencies to track offender movements and communicate directly with offenders in real-time through on-board two/three-way voice communication technology. It also provides IntelliTrack, a secure state of the art device-agnostic platform; IntelliTrack Mobile, a mobile application of the Intellitrack software is available for Android and iOS devices; TrackerPAL, a cloud-based monitoring system; TrackerPAL Mobile, a mobile application of the TrackerPAL software for Android and iOS devices; data analytics services; and BACtrack, a smartphone-based remote alcohol monitoring system. In addition, the company offers Empower smartphone application that provides victim and survivor support by creating a mobile geo-zone around a survivor of domestic abuse and communicates with the offender's tracking device; Socrates 360, a platform that offers various content and service; SecureCuff steel bands; and RF Beacon, a self-contained and short-range transmitting station that provides a radio frequency signal communicating with assigned offender GPS devices, as well as product support services. Further, the company develops and sells various related software, services, accessories, networking solutions, and monitoring applications. The company was formerly known as SecureAlert, Inc. and changed its name to Track Group, Inc. in May 2015. Track Group, Inc. was incorporated in 1995 and is headquartered in Naperville, Illinois.
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.
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