Financial Analysis: Tyler Technologies (NYSE:TYL) & Taoping (NASDAQ:TAOP)

Taoping (NASDAQ:TAOP) and Tyler Technologies (NYSE:TYL) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Earnings and Valuation

This table compares Taoping and Tyler Technologies’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taoping	$38.64 million	0.05	-$700,000.00	N/A	N/A
Tyler Technologies	$1.95 billion	10.20	$165.92 million	$4.42	106.11

Tyler Technologies has higher revenue and earnings than Taoping.

Insider & Institutional Ownership

4.0% of Taoping shares are owned by institutional investors. Comparatively, 93.3% of Tyler Technologies shares are owned by institutional investors. 45.4% of Taoping shares are owned by insiders. Comparatively, 2.2% of Tyler Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Taoping and Tyler Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taoping	N/A	N/A	N/A
Tyler Technologies	9.50%	9.35%	5.83%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Taoping and Tyler Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taoping	0	0	0	0	N/A
Tyler Technologies	0	2	7	0	2.78

Tyler Technologies has a consensus target price of $492.22, suggesting a potential upside of 4.95%. Given Tyler Technologies’ higher probable upside, analysts clearly believe Tyler Technologies is more favorable than Taoping.

Risk & Volatility

Taoping has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Tyler Technologies has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Summary

Tyler Technologies beats Taoping on 10 of the 11 factors compared between the two stocks.

About Taoping

Taoping Inc. provides cloud-based platform, resource sharing, and big data solutions to the Chinese new media, education residential community management, and elevator Internet of Things (IoT) industries in the People's Republic of China. It operates through Cloud-Based Technology and Traditional Information Technology segments. The company offers cloud-based software as a service to automate the interactive workflows between advertising agencies and their customers, including establishing new advertising projects, submitting advertisement proposals, revising and approving advertising proposals, processing payment online, remotely uploading advertisement content, and tracking and analyzing performance data. It also provides project-based technology products and services for the public sector; and software and hardware with integrated solutions, such as information technology infrastructure, internet-enabled display technologies, and IoT platforms to customers in government, education, residential community management, media, transportation, and other private sectors, as well as related maintenance and support services. In addition, the company offers cloud-application-terminal, IoT technology based digital advertising distribution network, and media resource sharing platform in the out-of-home advertising markets. Further, it operates Taoping Net, an advertising-resources trading service platform, which connect screen owners, advertisers, and consumers; and Taoping App that enable customers to distribute and manage ads from mobile terminals. The company was formerly known as China Information Technology, Inc. and changed its name to Taoping Inc. in June 2018. Taoping Inc. was founded in 1993 and is headquartered in Shenzhen, the People's Republic of China.

About Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.