Comparing CI&T (NYSE:CINT) & TSS (NASDAQ:TSSI)

CI&T (NYSE:CINT) and TSS (NASDAQ:TSSI) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Earnings & Valuation

This table compares CI&T and TSS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CI&T	$489.65 million	0.85	$40.62 million	$0.29	10.72
TSS	$245.72 million	0.81	$15.12 million	$0.48	14.65

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

Institutional and Insider Ownership

92.4% of CI&T shares are owned by institutional investors. 16.0% of TSS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

CI&T has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, TSS has a beta of 2.06, indicating that its share price is 106% more volatile than the S&P 500.

Profitability

This table compares CI&T and TSS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CI&T	6.79%	11.69%	6.51%
TSS	7.44%	19.22%	8.46%

Analyst Ratings

This is a summary of current recommendations and price targets for CI&T and TSS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CI&T	2	2	7	0	2.45
TSS	0	2	1	0	2.33

CI&T currently has a consensus target price of $6.08, indicating a potential upside of 95.43%. TSS has a consensus target price of $14.00, indicating a potential upside of 99.15%. Given TSS’s higher probable upside, analysts clearly believe TSS is more favorable than CI&T.

Summary

TSS beats CI&T on 8 of the 14 factors compared between the two stocks.

About CI&T

CI&T, Inc. provides strategy, design and software engineering services to enable digital transformation. The firm’s solutions and services include Digital Strategy, Customer-Centric Design and Top-of-the-Line Software Engineering. The company was founded by Cesar Nivaldo Gon, Bruno Guiçardi Neto and Fernando Matt Borges Martins on June 7, 2021 and is headquartered in Sao Paulo, Brazil.

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.