SurgePays (NASDAQ:SURG – Get Free Report) and Chegg (NYSE:CHGG – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares SurgePays and Chegg’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SurgePays | -83.42% | -967.32% | -232.66% |
| Chegg | -17.14% | -9.41% | -3.07% |
Earnings & Valuation
This table compares SurgePays and Chegg”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SurgePays | $60.88 million | 0.58 | -$45.73 million | ($2.14) | -0.79 |
| Chegg | $617.57 million | 0.16 | -$837.07 million | ($0.72) | -1.29 |
SurgePays has higher earnings, but lower revenue than Chegg. Chegg is trading at a lower price-to-earnings ratio than SurgePays, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
6.9% of SurgePays shares are held by institutional investors. Comparatively, 95.2% of Chegg shares are held by institutional investors. 30.5% of SurgePays shares are held by insiders. Comparatively, 3.7% of Chegg shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for SurgePays and Chegg, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SurgePays | 1 | 0 | 1 | 0 | 2.00 |
| Chegg | 4 | 1 | 0 | 1 | 1.67 |
SurgePays currently has a consensus price target of $9.75, indicating a potential upside of 476.92%. Chegg has a consensus price target of $1.13, indicating a potential upside of 21.49%. Given SurgePays’ stronger consensus rating and higher possible upside, equities research analysts plainly believe SurgePays is more favorable than Chegg.
Risk & Volatility
SurgePays has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Chegg has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500.
Summary
Chegg beats SurgePays on 8 of the 15 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 Chegg
Chegg, Inc. operates a direct-to-student learning platform that helps learners build essential life and job skills to accelerate their path from learning programs in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts, as well as Tinger Gold and DashPash Student services; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services; and Busuu, an online language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors, and a community of members to practice alongside. The company also provides a skills-based learning platform to learn technical skills comprising AI, coding, data analytics, and cybersecurity, as well as competencies consisting of emotional intelligence, mindset, emerging leadership, and decision making. In addition, it rents and sells print textbooks and eTextbooks; and offers advertising services. The company serves students and companies through direct marketing channels and social media. Chegg, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.
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