Head-To-Head Review: Spirent Communications (OTCMKTS:SPMYY) & SurgePays (NASDAQ:SURG)

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

Valuation and Earnings

This table compares Spirent Communications and SurgePays”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spirent Communications	$474.30 million	3.06	$25.20 million	N/A	N/A
SurgePays	$40.03 million	1.55	$20.62 million	($2.79)	-1.09

Spirent Communications has higher revenue and earnings than SurgePays.

Institutional and Insider Ownership

6.9% of SurgePays shares are owned by institutional investors. 1.0% of Spirent Communications shares are owned by insiders. Comparatively, 30.5% of SurgePays shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spirent Communications	N/A	N/A	N/A
SurgePays	-27.39%	-55.63%	-43.61%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Spirent Communications and SurgePays, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spirent Communications	0	0	0	0	0.00
SurgePays	0	0	1	0	3.00

SurgePays has a consensus target price of $8.75, indicating a potential upside of 187.83%. Given SurgePays’ stronger consensus rating and higher possible upside, analysts clearly believe SurgePays is more favorable than Spirent Communications.

Risk & Volatility

Spirent Communications has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, SurgePays has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Summary

Spirent Communications beats SurgePays on 7 of the 12 factors compared between the two stocks.

About Spirent Communications

Spirent Communications plc provides automated test and assurance solutions in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company operates through Lifecycle Service Assurance, and Networks & Security segments. The Lifecycle Service Assurance segment offers lab-based testing solutions for 5G mobile core networks, and cellular and Wi-Fi devices, as well as live solutions. This segment also provides lab and test automation solutions for the telecom industry and enterprises. The Networks & Security segment develops test methodologies, tools, and services for virtualised networks, cloud, and artificial intelligence networking infrastructure, as well as application performance and proactive security validation. This segment also offers Ethernet/internet protocol performance testing solutions, as well as navigation satellite system test and simulation solutions while addressing opportunities in the broader positioning, navigation, and timing market, including low earth orbit satellites and autonomous vehicles. The company was formerly known as Spirent plc and changed its name to Spirent Communications plc in May 2006. Spirent Communications plc was founded in 1936 and is headquartered in Crawley, the United Kingdom.

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.