Head-To-Head Review: SURGE COMPONENT (OTCMKTS:SPRS) and Ultralife (NASDAQ:ULBI)

SURGE COMPONENT (OTCMKTS:SPRS) and Ultralife (NASDAQ:ULBI) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Earnings and Valuation

This table compares SURGE COMPONENT and Ultralife”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SURGE COMPONENT	$31.21 million	0.47	$830,000.00	$0.15	16.67
Ultralife	$164.46 million	0.71	$6.31 million	$0.19	36.84

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

Institutional & Insider Ownership

30.7% of Ultralife shares are held by institutional investors. 53.0% of SURGE COMPONENT shares are held by insiders. Comparatively, 40.0% of Ultralife shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for SURGE COMPONENT and Ultralife, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SURGE COMPONENT	0	0	0	0	0.00
Ultralife	0	0	1	0	3.00

Ultralife has a consensus target price of $14.00, suggesting a potential upside of 100.00%. Given Ultralife’s stronger consensus rating and higher possible upside, analysts clearly believe Ultralife is more favorable than SURGE COMPONENT.

Risk & Volatility

SURGE COMPONENT has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Ultralife has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares SURGE COMPONENT and Ultralife’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SURGE COMPONENT	2.65%	4.44%	3.43%
Ultralife	1.79%	2.68%	1.74%

Summary

Ultralife beats SURGE COMPONENT on 10 of the 14 factors compared between the two stocks.

About SURGE COMPONENT

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, circuit protection devices, and audible components comprising audible transducers, Piezo buzzers, speakers, and microphones. The company also provides resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. Its products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. The company sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in Canada, China, other Asian countries, South America, and Europe. Surge Components, Inc. was incorporated in 1981 and is headquartered in Deer Park, New York.

About Ultralife

Ultralife Corporation, together with its subsidiaries, designs, manufactures, installs, and maintains power, and communication and electronics systems worldwide. The company operates in two segments, Battery & Energy Products and Communications Systems. The Battery & Energy Products segment offers lithium 9-volt, cylindrical, thin lithium manganese dioxide, rechargeable, and other non-rechargeable batteries; lithium-ion cells, multi-kilowatt module lithium-ion battery systems, and uninterruptable power supplies; and rugged military and commercial battery charging systems and accessories, including smart chargers, multi-bay charging systems, and various cables. The Communications Systems segment provides communications systems and accessories to support military communications systems, such as radio frequency amplifiers, power supplies and cables, connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, and integrated communication systems for fixed or vehicle applications comprising vehicle adapters, vehicle installed power enhanced rifleman appliqué systems, and SATCOM systems. This segment's military communications systems and accessories are designed to enhance and extend the operation of communications equipment, such as vehicle-mounted, manpack, and handheld transceivers. The company sells its products under the Ultralife, Ultralife HiRate, Ultralife Thin Cell, Ultralife Batteries, Lithium Power, McDowell Research, AMTITM, ABLETM, ACCUTRONICS, ACCUPRO, ENTELLION, SWE Southwest Electronic Energy Group, SWE SEASAFE, Excell Battery Group, and Criterion Gauge brands through original equipment manufacturers, and industrial and defense supply distributors. In addition, it sells its 9-volt battery to the broader consumer market through national and regional retail chains and online retailers. It serves government, defense, and commercial sectors. The company was incorporated in 1990 and is headquartered in Newark, New York.