Surge Component (OTCMKTS:SPRS) vs. TT Electronics (OTCMKTS:TTGPF) Critical Analysis

TT Electronics (OTCMKTS:TTGPF) and Surge Component (OTCMKTS:SPRS) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Profitability

This table compares TT Electronics and Surge Component’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TT Electronics	N/A	N/A	N/A
Surge Component	2.56%	4.49%	3.47%

Risk & Volatility

TT Electronics has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Surge Component has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Earnings and Valuation

This table compares TT Electronics and Surge Component”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TT Electronics	$665.93 million	0.53	-$68.24 million	N/A	N/A
Surge Component	$31.21 million	0.59	$830,000.00	$0.15	21.27

Surge Component has lower revenue, but higher earnings than TT Electronics.

Analyst Recommendations

This is a summary of current recommendations and price targets for TT Electronics and Surge Component, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TT Electronics	0	2	0	0	2.00
Surge Component	0	0	0	0	0.00

Summary

Surge Component beats TT Electronics on 6 of the 8 factors compared between the two stocks.

About TT Electronics

TT Electronics plc provides design-led advanced electronics technologies for performance critical applications in the healthcare, aerospace and defense, and automation and electrification markets in the United Kingdom, Rest of Europe, North America, Asia, and internationally. The company operates through three segments: Power and Connectivity, Global Manufacturing Solutions, and Sensors and Specialist Components. The Power and Connectivity segment designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data to optimize electronic systems. The Global Manufacturing Solutions segment provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of various products. This segment manufactures integrated product assemblies, as well as provides engineering services, including designing testing solutions and value-engineering. The Sensors and Specialist Components segment develops standard and customized solutions, including sensors and power management devices. Its solutions enhance the precision, speed, and reliability of critical aspects of its customers applications. It offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, Ferranti, IRC, Optek Technology, Precision, Power Partners, PowerPax, Roxspur Measurement and Control, Semelab, Stontronics, Torotel, and Welwyn brands. The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000. The company was incorporated in 1906 and is headquartered in Woking, the United Kingdom.

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.