Head-To-Head Comparison: SurgePays (NASDAQ:SURG) vs. Freshworks (NASDAQ:FRSH)

SurgePays (NASDAQ:SURG) and Freshworks (NASDAQ:FRSH) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Earnings & Valuation

This table compares SurgePays and Freshworks”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SurgePays	$62.37 million	0.15	-$36.07 million	($1.94)	-0.19
Freshworks	$838.81 million	3.25	$183.72 million	$0.62	15.89

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

Risk & Volatility

SurgePays has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Freshworks has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for SurgePays and Freshworks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SurgePays	2	0	1	0	1.67
Freshworks	1	7	6	1	2.47

SurgePays presently has a consensus price target of $3.50, indicating a potential upside of 845.95%. Freshworks has a consensus price target of $12.18, indicating a potential upside of 23.67%. Given SurgePays’ higher possible upside, analysts plainly believe SurgePays is more favorable than Freshworks.

Profitability

This table compares SurgePays and Freshworks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SurgePays	-64.91%	-967.32%	-310.16%
Freshworks	20.69%	4.27%	2.74%

Insider and Institutional Ownership

6.9% of SurgePays shares are owned by institutional investors. Comparatively, 75.6% of Freshworks shares are owned by institutional investors. 29.1% of SurgePays shares are owned by company insiders. Comparatively, 8.5% of Freshworks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Freshworks beats SurgePays on 13 of the 15 factors compared between the two stocks.

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.

About Freshworks

Freshworks Inc., a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels. The company also provides Freshsales, an advanced and user-friendly sales automation solution; Freshmarketer, a marketing automation solution for businesses to redefine their marketing strategies; Freshsales Suite, which offers businesses a unified platform that facilitates cohesive engagement and detailed tracking of customers throughout their entire buying journey; Freshservice that offers virtual agents to help employees resolve issues, make requests, and answer questions without contacting the service desk; and Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data. In addition, it offers Freshping to monitor website’s availability and get multichannel alerts if the website goes down; Freshstatus, which allows businesses to create a custom branded website status page for internal or external viewing to communicate website uptime and availability; and Freshsurvey to measure net promoter scores and other satisfaction metrics directly within Freshworks products. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.