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 $283.8M against $167.9M — 1.7× the size. TSS Inc. trades at the lower P/E: 10.6× against 23.6×. Information Services Group, Inc. grew revenue faster over the last twelve months: 4.85% against −14.2%. TSS Inc. has the higher net margin (8.45% vs 4.74%) and the lower return on invested capital (0.00% vs 11.2%). Across the 21 metrics below, TSS Inc. leads on 12 and Information Services Group, Inc. on 9.

Valuation

Metric III TSSI Information Technology Services median
P/E 23.62 10.63 16.12
P/S 1.13 0.92 1.14
P/B 3.01 2.24 1.73
Price to free cash flow 15.01 n/m 13.77
EV/EBITDA 11.69 12.53 9.89
EV/Sales 1.25 0.72 1.34
Earnings yield 4.23% 9.41% 3.10%
Free cash flow yield 6.66% (4.73%) 0.06%

Profitability

Metric III TSSI Information Technology Services median
Gross margin 45.20% 18.26% 30.04%
Operating margin 8.88% 0.00% 1.81%
Net margin 4.74% 8.45% 0.79%
Free cash flow margin 7.50% (4.35%) 0.00%
Return on equity 12.68% 23.33% 0.00%
Return on assets 5.70% 10.43% 0.00%
Return on invested capital 11.22% 0.00% 0.00%

Growth

Metric III TSSI Information Technology Services median
Revenue growth (TTM) 4.85% (14.22%) 4.85%
EPS growth (last fiscal year) 216.67% 133.33% 3.57%
Revenue growth, 5-year CAGR (0.36%) 40.39% 6.93%
Net income growth, 5-year CAGR 27.66% 186.03% 0.00%

Health

Metric III TSSI Information Technology Services median
Debt to equity 0.63 0.18 0.31
Current ratio 2.80 1.79 1.69
Net debt to EBITDA 1.35 (6.65) 0.55

Dividend

Metric III TSSI Information Technology Services median
Dividend yield 3.05% — 1.97%
Payout ratio 0.76 — 0.29

Size

Metric III TSSI Information Technology Services median
Market cap 283.76m 167.90m 1.02b

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