Comparing SurgePays (NASDAQ:SURG) and KDDI (OTCMKTS:KDDIY)

KDDI (OTCMKTS:KDDIY) and SurgePays (NASDAQ:SURG) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for KDDI and SurgePays, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KDDI	1	0	0	1	2.50
SurgePays	1	1	1	0	2.00

SurgePays has a consensus target price of $3.50, indicating a potential upside of 1,141.13%. Given SurgePays’ higher probable upside, analysts clearly believe SurgePays is more favorable than KDDI.

Institutional and Insider Ownership

0.1% of KDDI shares are held by institutional investors. Comparatively, 6.9% of SurgePays shares are held by institutional investors. 29.1% of SurgePays shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares KDDI and SurgePays”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KDDI	$40.34 billion	1.79	$4.67 billion	$1.26	14.32
SurgePays	$56.96 million	0.12	-$36.07 million	($1.94)	-0.15

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

Volatility & Risk

KDDI has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, SurgePays has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KDDI	N/A	N/A	N/A
SurgePays	-64.91%	N/A	-310.16%

Summary

KDDI beats SurgePays on 9 of the 14 factors compared between the two stocks.

About KDDI

KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers telecommunication services and other services such as finance, energy, and LX through its multi-brands au, UQ mobile, and povo. The Business Services segment offers smartphones and other devices, network and cloud services, and data center services to corporate customers under the TELEHOUSE brand. The company was incorporated in 1984 and is headquartered in Tokyo, Japan.

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.