Contrasting SurgePays (NASDAQ:SURG) & IDT (NYSE:IDT)

SurgePays (NASDAQ:SURG) and IDT (NYSE:IDT) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SurgePays	0	1	1	0	2.50
IDT	0	0	0	0	N/A

SurgePays presently has a consensus price target of $10.00, indicating a potential upside of 156.41%. Given SurgePays’ higher probable upside, equities analysts plainly believe SurgePays is more favorable than IDT.

Risk & Volatility

SurgePays has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, IDT has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Profitability

This table compares SurgePays and IDT’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%
IDT	3.08%	20.18%	8.13%

Earnings and Valuation

This table compares SurgePays and IDT’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SurgePays	$137.14 million	0.55	$20.62 million	$1.39	2.81
IDT	$1.20 billion	0.80	$40.49 million	$1.45	26.08

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

Institutional and Insider Ownership

6.9% of SurgePays shares are held by institutional investors. Comparatively, 59.3% of IDT shares are held by institutional investors. 29.4% of SurgePays shares are held by company insiders. Comparatively, 15.0% of IDT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

SurgePays beats IDT on 7 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 IDT

IDT Corporation provides communications and payment services in the United States, the United Kingdom, and internationally. It operates through Fintech, National Retail Solutions, net2phone, and Traditional Communications segments. The company operates point of sale, a terminal-based platform which provides independent retailers store management software, electronic payment processing, and other ancillary merchant services; and provides marketers with digital out-of-home advertising and transaction data. It also offers BOSS Money for international money remittance, and related value and payment transfer services; and Leaf, a digital wallet services which operates money transfer businesses, as well as net2phone, a unified cloud communication services, which includes voice, texting, and chat services to enable smarter business conversations. In addition, the company provides IDT Digital Payments enables businesses, entrepreneurs, and developers to offer prepaid digital offerings including mobile airtime top-up, mobile data bundles, digital gift cards, and prepaid utility payments through its Zendit platform; and BOSS Revolution Calling, which provides international long-distance voice services primarily to immigrant communities in the United States and Canada. Further, it offers IDT Global, a wholesale provider of international voice and SMS termination, and outsourced traffic management solutions to telecoms; and IDT Express, a unique self-serve portal that offers SMBs the power to purchase DIDs, manage IPs, select termination quality, make payments, and other services. The company also provides Awards2Go, a B2B incentive, loyalty, and customer appreciation gift card solution; and IO Security which provides automation to remediation. IDT Corporation was incorporated in 1978 and is headquartered in Newark, New Jersey.