Information Services Group, Inc. (III) vs TSS Inc. (TSSI)

Information Services Group, Inc. and TSS Inc. are both Information Technology Services companies. Information Services Group, Inc. is the larger, with a market value of $276.0M against $209.7M — 1.3× the size. TSS Inc. trades at the lower P/E: 13.6× against 23.5×. Information Services Group, Inc. grew revenue faster over the last twelve months: 4.18% against −26.5%. TSS Inc. has the higher net margin (7.44% vs 4.67%) and the higher return on invested capital (14.4% vs 9.81%). Across the 21 metrics below, TSS Inc. leads on 13 and Information Services Group, Inc. on 8.

Valuation

Metric III TSSI Information Technology Services median
P/E 23.54 13.60 16.42
P/S 1.09 1.03 1.06
P/B 2.83 2.47 1.57
Price to free cash flow 16.02 n/m 11.62
EV/EBITDA 12.18 12.60 9.74
EV/Sales 1.23 0.75 1.23
Earnings yield 4.25% 7.36% 4.25%
Free cash flow yield 6.24% (10.56%) 4.50%

Profitability

Metric III TSSI Information Technology Services median
Gross margin 44.80% 16.97% 29.97%
Operating margin 8.24% 3.20% 3.30%
Net margin 4.67% 7.44% 2.09%
Free cash flow margin 6.77% (10.85%) 1.51%
Return on equity 12.30% 31.99% 3.67%
Return on assets 5.77% 9.13% 0.47%
Return on invested capital 9.81% 14.36% 0.57%

Growth

Metric III TSSI Information Technology Services median
Revenue growth (TTM) 4.18% (26.52%) 7.12%
EPS growth (last fiscal year) 216.67% 133.33% 1.38%
Revenue growth, 5-year CAGR (0.36%) 40.39% 7.86%
Net income growth, 5-year CAGR 27.66% 186.03% 0.00%

Health

Metric III TSSI Information Technology Services median
Debt to equity 0.62 0.20 0.45
Current ratio 2.81 1.66 1.66
Net debt to EBITDA 1.35 (6.65) 0.45

Dividend

Metric III TSSI Information Technology Services median
Dividend yield 3.19% — 1.97%
Payout ratio 0.78 — 0.30

Size

Metric III TSSI Information Technology Services median
Market cap 275.95m 209.67m 1.11b

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