Financial Survey: Surge Component (OTCMKTS:SPRS) and TDK (OTCMKTS:TTDKY)

Surge Component (OTCMKTS:SPRS) and TDK (OTCMKTS:TTDKY) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Earnings and Valuation

This table compares Surge Component and TDK”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surge Component	$36.32 million	0.54	$1.14 million	$0.18	18.61
TDK	$14.48 billion	2.13	$1.10 billion	$0.66	24.00

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

Analyst Ratings

This is a summary of current ratings for Surge Component and TDK, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surge Component	0	0	0	0	0.00
TDK	0	0	0	1	4.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Surge Component	2.80%	4.98%	3.87%
TDK	7.85%	9.83%	4.86%

Volatility & Risk

Surge Component has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, TDK has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Summary

TDK beats Surge Component on 11 of the 11 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 TDK

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.