Comparing SurgePays (NASDAQ:SURG) and KDDI (OTCMKTS:KDDIY)
by Tristan Rich · The Markets DailyKDDI (OTCMKTS:KDDIY – Get Free Report) and SurgePays (NASDAQ:SURG – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.
Institutional & Insider Ownership
0.1% of KDDI shares are held by institutional investors. Comparatively, 6.9% of SurgePays shares are held by institutional investors. 29.1% of SurgePays shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for KDDI and SurgePays, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KDDI | 0 | 1 | 0 | 1 | 3.00 |
| SurgePays | 1 | 1 | 1 | 0 | 2.00 |
SurgePays has a consensus target price of $3.50, suggesting a potential upside of 1,952.79%. Given SurgePays’ higher probable upside, analysts plainly believe SurgePays is more favorable than KDDI.
Risk and Volatility
KDDI has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, SurgePays has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.
Valuation and Earnings
This table compares KDDI and SurgePays”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KDDI | $40.34 billion | 1.82 | $4.67 billion | $1.26 | 14.56 |
| SurgePays | $67.06 million | 0.06 | -$36.07 million | ($1.53) | -0.11 |
KDDI has higher revenue and earnings than SurgePays. SurgePays is trading at a lower price-to-earnings ratio than KDDI, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares KDDI and SurgePays’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KDDI | N/A | N/A | N/A |
| SurgePays | -47.89% | N/A | -274.37% |
Summary
KDDI beats SurgePays on 9 of the 14 factors compared between the two stocks.
About KDDI
KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers telecommunication services and other services such as finance, energy, and LX through its multi-brands au, UQ mobile, and povo. The Business Services segment offers smartphones and other devices, network and cloud services, and data center services to corporate customers under the TELEHOUSE brand. The company was incorporated in 1984 and is headquartered in Tokyo, Japan.
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.