Telos (NASDAQ:TLS) and Draganfly (NASDAQ:DPRO) Critical Review

Draganfly (NASDAQ:DPRO) and Telos (NASDAQ:TLS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Draganfly	-292.88%	-27.88%	-26.20%
Telos	-14.25%	-11.95%	-8.45%

Insider & Institutional Ownership

10.4% of Draganfly shares are held by institutional investors. Comparatively, 62.1% of Telos shares are held by institutional investors. 14.9% of Telos shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Draganfly and Telos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Draganfly	0	0	2	2	3.50
Telos	1	2	3	0	2.33

Draganfly presently has a consensus target price of $14.50, indicating a potential upside of 203.35%. Telos has a consensus target price of $7.10, indicating a potential upside of 45.49%. Given Draganfly’s stronger consensus rating and higher probable upside, equities analysts clearly believe Draganfly is more favorable than Telos.

Risk and Volatility

Draganfly has a beta of 2.71, suggesting that its stock price is 171% more volatile than the S&P 500. Comparatively, Telos has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Draganfly	$5.53 million	29.71	-$16.45 million	($0.98)	-4.88
Telos	$164.80 million	2.22	-$36.55 million	($0.35)	-13.94

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

Summary

Telos beats Draganfly on 8 of the 15 factors compared between the two stocks.

About Draganfly

Draganfly Inc. develops, manufactures, and sells cutting-edge unmanned and remote data collection and analysis platforms and systems in the United States and Canada. The company offers quadcopters, fixed-wing aircraft, ground-based robots, handheld controllers, and flight training, as well as software used for tracking, live streaming, and data collection. It also operates a health/telehealth platform that is a set of technologies that remotely detect various biometrics, such as heart rate, oxygen saturation, and blood pressure. In addition, the company provides sanitary spraying services to indoor and outdoor public gathering spaces, including sport stadiums and fields, and custom engineering, training, consulting, flight, and geographic information systems data services. It serves public safety, agriculture, industrial inspections, and mapping and surveying markets. Draganfly Inc. was founded in 1998 and is headquartered in Saskatoon, Canada.

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.