Contrasting AT&T (NYSE:T) and SurgePays (NASDAQ:SURG)

AT&T (NYSE:T) and SurgePays (NASDAQ:SURG) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Profitability

This table compares AT&T and SurgePays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AT&T	11.13%	14.63%	4.24%
SurgePays	15.03%	104.66%	49.78%

Insider & Institutional Ownership

57.1% of AT&T shares are held by institutional investors. Comparatively, 6.9% of SurgePays shares are held by institutional investors. 0.1% of AT&T shares are held by insiders. Comparatively, 29.4% of SurgePays shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares AT&T and SurgePays’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AT&T	$122.43 billion	1.01	$14.40 billion	$1.86	9.24
SurgePays	$137.14 million	0.58	$20.62 million	$1.39	2.94

AT&T has higher revenue and earnings than SurgePays. SurgePays is trading at a lower price-to-earnings ratio than AT&T, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

AT&T has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, SurgePays has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for AT&T and SurgePays, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AT&T	0	4	9	0	2.69
SurgePays	0	1	1	0	2.50

AT&T currently has a consensus price target of $20.81, indicating a potential upside of 21.12%. SurgePays has a consensus price target of $10.00, indicating a potential upside of 144.50%. Given SurgePays’ higher probable upside, analysts plainly believe SurgePays is more favorable than AT&T.

Summary

AT&T beats SurgePays on 8 of the 14 factors compared between the two stocks.

About AT&T

AT&T Inc. provides telecommunications and technology services worldwide. The company operates through two segments, Communications and Latin America. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, carrying cases/protective covers, and wireless chargers through its own company-owned stores, agents, and third-party retail stores. It also provides Virtual Private Networks, AT&T Dedicated Internet, Ethernet, data services, cloud solutions, outsourcing, and managed professional services, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers. In addition, this segment offers broadband services, including fiber connections, legacy telephony voice communication services, and other VoIP services and equipment to residential customers. This segment markets its communications services and products under the AT&T, AT&T Business, Cricket, AT&T PREPAID, and AT&T Fiber brand names. The Latin America segment provides postpaid and prepaid wireless services in Mexico under the AT&T and Unefon brand names, as well as sells smartphones through its owned stores, agents and third-party retail stores. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005. AT&T Inc. was incorporated in 1983 and is based in Dallas, Texas.

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.