Comparing TSS (NASDAQ:TSSI) and Information Services Group (NASDAQ:III)

TSS (NASDAQ:TSSI) and Information Services Group (NASDAQ:III) are both small-cap construction companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Volatility & Risk

TSS has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Information Services Group has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Valuation & Earnings

This table compares TSS and Information Services Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TSS	$122.53 million	1.61	$70,000.00	$0.18	45.83
Information Services Group	$247.59 million	0.78	$6.15 million	$0.05	80.00

Information Services Group has higher revenue and earnings than TSS. TSS is trading at a lower price-to-earnings ratio than Information Services Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

73.1% of Information Services Group shares are held by institutional investors. 30.5% of TSS shares are held by insiders. Comparatively, 16.0% of Information Services Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares TSS and Information Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TSS	3.59%	87.89%	11.84%
Information Services Group	-1.20%	4.43%	1.83%

Analyst Recommendations

This is a summary of current recommendations for TSS and Information Services Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TSS	0	0	0	0	0.00
Information Services Group	0	0	1	1	3.50

Information Services Group has a consensus price target of $3.75, suggesting a potential downside of 6.25%. Given Information Services Group’s stronger consensus rating and higher probable upside, analysts clearly believe Information Services Group is more favorable than TSS.

Summary

Information Services Group beats TSS on 8 of the 15 factors compared between the two stocks.

About TSS

TSS, Inc. offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc., formerly known as Fortress International Group, Inc., is based in Columbia, United States.

About Information Services Group

Information Services Group, Inc., together with its subsidiaries, operates as a technology research and advisory company in the Americas, Europe, and the Asia Pacific. The company offers digital transformation services, including automation, cloud, and data analytics; sourcing advisory; managed governance and risk; network carrier; technology strategy and operations design; change management; and market intelligence and technology research and analysis services. It supports private and public sector organizations to transform and optimize their operational environments. The company also provides ISG Digital, a client solution platform that helps clients developing technology, transformation, sourcing, and digital solutions; and ISG Enterprise, a client solution platform that helps clients manage change and optimize operations in areas comprising finance, human resource, and Procure2Pay. In addition, it offers ISG GovernX to automate the management of third-party supplier relationships that comprise contract and project lifecycles, and risk management; ISG Generative AI; ISG Network Select to streamline and simplify how enterprises build their network solutions; HR technology and transformations; providers-as-a-business services; ISG Digital Engineering; ISG Research; and training-as-a-service. The company serves private sector clients operating in the manufacturing, banking and financial services, insurance, health sciences, energy and utilities, and consumer services industries; and public sector clients, including state and local governments, airport and transit authorities, and national and provincial government units. Information Services Group, Inc. was founded in 2006 and is based in Stamford, Connecticut.