Contrasting TSS (NASDAQ:TSSI) & WM Technology (NASDAQ:MAPS)
by Michael Walen · The Markets DailyWM Technology (NASDAQ:MAPS – Get Free Report) and TSS (NASDAQ:TSSI – Get Free Report) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Volatility & Risk
WM Technology has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, TSS has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500.
Institutional and Insider Ownership
22.0% of WM Technology shares are held by institutional investors. 19.7% of WM Technology shares are held by company insiders. Comparatively, 16.0% of TSS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares WM Technology and TSS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WM Technology | 1.12% | 1.51% | 1.04% |
| TSS | 7.44% | 19.22% | 8.46% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for WM Technology and TSS, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WM Technology | 1 | 0 | 0 | 0 | 1.00 |
| TSS | 0 | 2 | 2 | 0 | 2.50 |
TSS has a consensus target price of $16.17, indicating a potential upside of 100.83%. Given TSS’s stronger consensus rating and higher possible upside, analysts plainly believe TSS is more favorable than WM Technology.
Earnings & Valuation
This table compares WM Technology and TSS”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WM Technology | $174.70 million | 0.38 | $1.96 million | $0.02 | 21.00 |
| TSS | $245.72 million | 0.92 | $15.12 million | $0.48 | 16.77 |
TSS has higher revenue and earnings than WM Technology. TSS is trading at a lower price-to-earnings ratio than WM Technology, indicating that it is currently the more affordable of the two stocks.
Summary
TSS beats WM Technology on 11 of the 14 factors compared between the two stocks.
About WM Technology
WM Technology, Inc. provides ecommerce and compliance software solutions to retailers and brands in cannabis market in the United States and internationally. The company offers Weedmaps marketplace that allows cannabis users to search for and browse cannabis products from retailers and brands, and reserve products from local retailers; and education and learning information to help newer consumers learn about the types of products to purchase. It also provides monthly subscription-based business software solutions, including WM Listings, WM Orders, WM Store, WM Connectors, and WM Insights as well as other add-on products, such as WM Ads, WM AdSuite, WM Customer Relationship Management, WM Dispatch, and WM Screens. WM Technology, Inc. was founded in 2008 and is headquartered in Irvine, California.
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.