By otakuyassine3@gmail.com 
TSS (NASDAQ:TSSI – Get Free Report) and Montrose Environmental Group (NYSE:MEG – Get Free Report) are both small-cap construction companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
Risk and Volatility
TSS has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Montrose Environmental Group has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for TSS and Montrose Environmental Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TSS | 0 | 0 | 0 | 0 | 0.00 |
| Montrose Environmental Group | 0 | 2 | 3 | 0 | 2.60 |
Montrose Environmental Group has a consensus price target of $35.60, indicating a potential upside of 70.83%. Given Montrose Environmental Group’s stronger consensus rating and higher possible upside, analysts clearly believe Montrose Environmental Group is more favorable than TSS.
Earnings & Valuation
This table compares TSS and Montrose Environmental Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TSS | $54.40 million | 6.33 | $70,000.00 | $0.18 | 80.06 |
| Montrose Environmental Group | $673.08 million | 1.06 | -$30.86 million | ($1.49) | -13.99 |
TSS has higher earnings, but lower revenue than Montrose Environmental Group. Montrose Environmental Group 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
87.9% of Montrose Environmental Group shares are owned by institutional investors. 30.5% of TSS shares are owned by insiders. Comparatively, 11.9% of Montrose Environmental Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares TSS and Montrose Environmental 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% |
| Montrose Environmental Group | -5.28% | 1.86% | 0.78% |
Summary
TSS beats Montrose Environmental Group on 8 of the 14 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 Montrose Environmental Group
Montrose Environmental Group, Inc. operates as an environmental services company in the United States, Canada, and internationally. The company operates in three segments: Assessment, Permitting and Response; Measurement and Analysis; and Remediation and Reuse. The Assessment, Permitting and Response segment provides scientific advisory and consulting services to support environmental assessments; environmental emergency response and recovery; toxicology consulting and environmental audits and permits for current operations; facility upgrades; new projects; decommissioning projects; and development projects. This segment also offers technical advisory and consulting services, including regulatory compliance support and planning, environmental, ecosystem and toxicological assessments, and support during responses to environmental disruptions. The Measurement and Analysis segment tests and analyzes air, water, and soil to determine concentrations of contaminants, as well as the toxicological impact of contaminants on flora, fauna, and human health. Its services include source and ambient air testing and monitoring, leak detection, and advanced analytical laboratory services, such as storm water, wastewater, and drinking water analysis. The Remediation and Reuse segment provides engineering, design, implementation, and operations and maintenance services primarily to treat contaminated water, remove contaminants from soil, or create biogas from waste. The company serves financial, oil and gas, utilities, construction, automotive, real-estate, midstream energy, manufacturing, commodities, petrochemical, food and beverage, telecommunications, and engineering industries, as well as local, state, provincial, and federal government entities. Montrose Environmental Group, Inc. was founded in 2012 and is headquartered in North Little Rock, Arkansas.
Receive News & Ratings for TSS Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for TSS and related companies with MarketBeat.com’s FREE daily email newsletter.