Comparing SurgePays (NASDAQ:SURG) & AT&T (NYSE:T)

SurgePays (NASDAQ:SURG) and AT&T (NYSE:T) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Profitability

This table compares SurgePays and AT&T’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%
AT&T	11.13%	14.63%	4.24%

Earnings & Valuation

This table compares SurgePays and AT&T’s top-line revenue, earnings per share 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
AT&T	$122.43 billion	1.00	$14.40 billion	$1.86	9.13

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

Institutional & Insider Ownership

6.9% of SurgePays shares are owned by institutional investors. Comparatively, 57.1% of AT&T shares are owned by institutional investors. 29.4% of SurgePays shares are owned by company insiders. Comparatively, 0.1% of AT&T shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

SurgePays has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, AT&T has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for SurgePays and AT&T, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SurgePays	0	1	1	0	2.50
AT&T	0	4	9	0	2.69

SurgePays currently has a consensus price target of $10.00, suggesting a potential upside of 148.14%. AT&T has a consensus price target of $20.81, suggesting a potential upside of 22.47%. Given SurgePays’ higher possible upside, analysts plainly believe SurgePays is more favorable than AT&T.

Summary

AT&T beats SurgePays on 8 of the 14 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 AT&T

AT&T Inc. provides telecommunications and technology services worldwide. The company operates through two segments, Communications and Latin America. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, carrying cases/protective covers, and wireless chargers through its own company-owned stores, agents, and third-party retail stores. It also provides Virtual Private Networks, AT&T Dedicated Internet, Ethernet, data services, cloud solutions, outsourcing, and managed professional services, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers. In addition, this segment offers broadband services, including fiber connections, legacy telephony voice communication services, and other VoIP services and equipment to residential customers. This segment markets its communications services and products under the AT&T, AT&T Business, Cricket, AT&T PREPAID, and AT&T Fiber brand names. The Latin America segment provides postpaid and prepaid wireless services in Mexico under the AT&T and Unefon brand names, as well as sells smartphones through its owned stores, agents and third-party retail stores. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005. AT&T Inc. was incorporated in 1983 and is based in Dallas, Texas.