Critical Contrast: TIC Solutions (NYSE:TIC) and BlackSky Technology (NYSE:BKSY)

BlackSky Technology (NYSE:BKSY) and TIC Solutions (NYSE:TIC) are both small-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Earnings & Valuation

This table compares BlackSky Technology and TIC Solutions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackSky Technology	$106.57 million	11.21	-$70.26 million	($2.55)	-11.45
TIC Solutions	$1.53 billion	1.45	-$87.12 million	($0.52)	-19.35

BlackSky Technology has higher earnings, but lower revenue than TIC Solutions. TIC Solutions is trading at a lower price-to-earnings ratio than BlackSky Technology, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

27.1% of BlackSky Technology shares are owned by institutional investors. 5.2% of BlackSky Technology shares are owned by company insiders. Comparatively, 11.4% of TIC Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for BlackSky Technology and TIC Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackSky Technology	1	1	2	0	2.25
TIC Solutions	2	3	2	0	2.00

BlackSky Technology currently has a consensus target price of $39.33, suggesting a potential upside of 34.77%. TIC Solutions has a consensus target price of $11.30, suggesting a potential upside of 12.28%. Given BlackSky Technology’s stronger consensus rating and higher possible upside, research analysts clearly believe BlackSky Technology is more favorable than TIC Solutions.

Volatility and Risk

BlackSky Technology has a beta of 2.61, meaning that its share price is 161% more volatile than the S&P 500. Comparatively, TIC Solutions has a beta of 2.83, meaning that its share price is 183% more volatile than the S&P 500.

Profitability

This table compares BlackSky Technology and TIC Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlackSky Technology	-61.24%	-68.90%	-16.14%
TIC Solutions	-5.64%	-2.30%	-1.11%

Summary

TIC Solutions beats BlackSky Technology on 7 of the 13 factors compared between the two stocks.

About BlackSky Technology

BlackSky Technology Inc. provides geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operation of satellite and ground systems for government and commercial customers in North America, the Middle East, the Asia Pacific, and internationally. The company's Spectra software platform processes a range of observations from its satellite constellation and various external data sources, including imaging, radar and radio frequency satellites, environmental sensors, asset tracking sensors, Internet-of-Things (IoT) connected devices, internet-enabled narrative sources, and a variety of geotemporal data feeds. It offers a range of services related to object, change and anomaly detection, site monitoring, and enhanced analytics, which helps to detect key pattern of life changes in critical locations, including strategic locations and infrastructure comprising ports, airports, and construction sites; retail activity; commodities stockpiles; and other sites that contain critical commodities and supply chain inventory. In addition, the company develops and delivers satellites and payload systems; and provides professional and engineering services. Its products and services are used in national security, supply chain intelligence, crisis management, critical infrastructure monitoring, economic intelligence, and other applications. BlackSky Technology Inc. was incorporated in 2018 and is headquartered in Herndon, Virginia.

About TIC Solutions

Acuren Corporation provides critical asset integrity services in North America. Its activities include various nondestructive testing (NDT) solutions, such as radiography, ultrasonic testing, magnetic particle inspection, penetrant testing, and visual inspection. Its NDT activities include inspection and evaluation of industrial equipment through various technology-enabled methods to ensure asset integrity, avoid accidents, and comply with regulatory requirements without destroying the asset or component. The company also provides market rope access technician solutions, including inspection and testing, as well as insulation, coatings and blasting, welding, pipe fitting, hoisting and rigging, and electrical services. In addition, its TIC service includes support from consulting engineers with in-lab destructive testing capabilities. The company provides support failure investigation, material selection, corrosion engineering, welding engineering, fracture mechanics, destructive testing, and chemical analysis. It serves a range of industrial markets, primarily chemical, pipeline, refinery, power generation, oilsands, automotive, aerospace, mining, manufacturing, renewable energy, and pulp and paper. The company was founded in 1991 and is headquartered in Tomball, Texas.