Analyzing TIM (NYSE:TIMB) & SurgePays (NASDAQ:SURG)

TIM (NYSE:TIMB) and SurgePays (NASDAQ:SURG) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TIM and SurgePays, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TIM	1	9	2	1	2.23
SurgePays	1	1	1	0	2.00

TIM presently has a consensus target price of $24.82, suggesting a potential upside of 40.60%. SurgePays has a consensus target price of $3.50, suggesting a potential upside of 1,923.12%. Given SurgePays’ higher possible upside, analysts plainly believe SurgePays is more favorable than TIM.

Volatility and Risk

TIM has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, SurgePays has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Valuation & Earnings

This table compares TIM and SurgePays”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TIM	$27.40 billion	0.31	$772.28 million	$1.69	10.44
SurgePays	$56.96 million	0.08	-$36.07 million	($1.53)	-0.11

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

Profitability

This table compares TIM and SurgePays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TIM	15.73%	17.99%	7.74%
SurgePays	-47.89%	N/A	-274.37%

Institutional and Insider Ownership

6.9% of SurgePays shares are held by institutional investors. 29.1% of SurgePays shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

TIM beats SurgePays on 11 of the 15 factors compared between the two stocks.

About TIM

TIM S.A., a telecommunications company, provides mobile voice, data, and broadband services in Brazil. The company offers in mobile, landline, long-distance, and data transmission services. It also offers fixed ultra-broadband, fixed ultraband broadband, and digital content services. The company serves individuals and corporates, as well as small, medium, and large companies. TIM S.A is based in Rio de Janeiro, Brazil. The company operates as a subsidiary of TIM Brasil Serviços e Participações S.A.

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.