TALKTALK TELECO/ADR (OTCMKTS:TKTCY) versus SurgePays (NASDAQ:SURG) Critical Survey

SurgePays (NASDAQ:SURG) and TALKTALK TELECO/ADR (OTCMKTS:TKTCY) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for SurgePays and TALKTALK TELECO/ADR, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SurgePays	0	1	1	0	2.50
TALKTALK TELECO/ADR	0	0	0	0	N/A

SurgePays currently has a consensus target price of $10.00, indicating a potential upside of 148.14%. Given SurgePays’ higher possible upside, equities analysts plainly believe SurgePays is more favorable than TALKTALK TELECO/ADR.

Volatility and Risk

SurgePays has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, TALKTALK TELECO/ADR has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Valuation and Earnings

This table compares SurgePays and TALKTALK TELECO/ADR’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SurgePays	$137.14 million	0.57	$20.62 million	$1.39	2.90
TALKTALK TELECO/ADR	$1.99 billion	0.78	$194.52 million	$0.34	20.00

TALKTALK TELECO/ADR has higher revenue and earnings than SurgePays. SurgePays is trading at a lower price-to-earnings ratio than TALKTALK TELECO/ADR, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

6.9% of SurgePays shares are owned by institutional investors. 29.4% of SurgePays 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 SurgePays and TALKTALK TELECO/ADR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SurgePays	15.03%	104.66%	49.78%
TALKTALK TELECO/ADR	N/A	N/A	N/A

Summary

SurgePays beats TALKTALK TELECO/ADR on 9 of the 13 factors compared between the two stocks.

About SurgePays

SurgePays, Inc., together with its subsidiaries, operates as a financial technology and telecom company in the United States. It operates through three segments: Mobile Virtual Network Operators, Comprehensive Platform Services, and Lead Generation. The company offers subsidized and non-subsidized mobile virtual network operators for internet connectivity through mobile broadband services to consumers; ACH banking relationships and fintech transactions platform to convenience stores; wireless top-up transactions and wireless product aggregation; and lead generation and case management solutions primarily to law firms in the mass tort industry, as well as call center activities. SurgePays, Inc. is headquartered in Bartlett, Tennessee.

About TALKTALK TELECO/ADR

TalkTalk Telecom Group PLC provides fixed line, TV, and mobile telecommunications services. It offers landline, broadband, fiber, TV, and mobile services, including fixed price plans and unlimited broadband usage, as well as HomeSafe, a network-based security and filtering system. The company also provides various business-grade communications products and services, including Internet access, data, voice, and mobile. TalkTalk Telecom Group PLC was founded in 2002 and is based in London, the United Kingdom.