FRONTEO (FTEO) vs. Tucows (TCX) Head-To-Head Survey

FRONTEO (NASDAQ:FTEO) and Tucows (NASDAQ:TCX) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares FRONTEO and Tucows’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FRONTEO $111.36 million 2.72 -$6.25 million N/A N/A
Tucows $329.42 million 1.86 $22.32 million N/A N/A

Tucows has higher revenue and earnings than FRONTEO.

Profitability

This table compares FRONTEO and Tucows’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FRONTEO -0.85% 9.35% 2.83%
Tucows 6.81% 26.78% 5.28%

Risk & Volatility

FRONTEO has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Tucows has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for FRONTEO and Tucows, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FRONTEO 0 0 1 0 3.00
Tucows 0 0 0 0 N/A

FRONTEO presently has a consensus target price of $23.00, suggesting a potential upside of 44.84%. Given FRONTEO’s higher probable upside, research analysts plainly believe FRONTEO is more favorable than Tucows.

Insider & Institutional Ownership

54.6% of Tucows shares are owned by institutional investors. 11.8% of Tucows shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Tucows beats FRONTEO on 7 of the 12 factors compared between the two stocks.

FRONTEO Company Profile

FRONTEO, Inc. provides Asian-language eDiscovery solutions and services primarily in the United States, Europe, and Asia. The company operates in two segments, Legal Tech Services and Artificial Intelligence (AI) Solutions Services. It has eDiscovery and forensic information documented in Japanese, Korean, Chinese, and English. The company assists clients involved in cross-border litigation, administrative proceedings, and internal investigations, including those related to antitrust investigations, intellectual property litigation, the Foreign Corrupt Practices Act, and product liability investigations. It also provides Lit i View, an online eDiscovery software, which handles Asian-language characters, encoding schemes, and native file systems; and Intelligence Cloud solution to maintain client data during and after a particular litigation or investigation, and data and documents in a relational database of its clients' data and documents. In addition, the company offers electronic data forensic investigation solutions and services that enables the preservation, analysis, processing, and production of electronically stored information in connection with fraud and corporate information leakage; forensic tools; and Lit i View XAMINER, a digital forensic software, and other related hardware and software products. Further, it helps to create document management procedures; conduct corporate risk audits; and comply with legal requirements to provide information to stakeholders. Additionally, the company provides AI solutions in the fields of business intelligence, healthcare, and digital communications. It serves enterprises, government agencies, law firms, and other organizations under the FRONTEO, KIBIT, and Landscaping brands. The company was formerly known as UBIC, Inc. and changed its name to FRONTEO, Inc. in July 2016. FRONTEO, Inc. was founded in 2003 and is headquartered in Tokyo, Japan.

Tucows Company Profile

Tucows Inc. provides network access, domain name registration, email, mobile telephony, and other Internet services in Canada, the United States, and Germany. It operates in two segments, Network Access Services and Domain Services. The Network Access Services segment offers mobile and fixed high-speed Internet access services, and Internet hosting and network consulting services. The Domain Services segment provides OpenSRS domain service that offers services related to the registration, renewal, transfer, and management of domain names; OpenSRS value-added services, such as hosted email service that provides email delivery and Webmail access to various mailboxes; Internet security services; publishing tools; SSL certificates; and billing services. This segment also offers Platypus billing software, which provides billing, provisioning, and customer care software solutions to Internet service providers (ISPs); and Internet domain name registration and email services to individuals and small businesses. This segment offers its services under the OpenSRS, eNom, and Hover brands. Tucows Inc. provides its services through an Internet-based distribution network of ISPs, Web hosting companies, and other providers of Internet services to end-users. The company was formerly known as Infonautics, Inc. and changed its name to Tucows Inc. in August 2001. Tucows Inc. was founded in 1992 and is headquartered in Toronto, Canada.

Receive News & Ratings for FRONTEO Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for FRONTEO and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply