SurgePays (NASDAQ:SURG – Get Free Report) and TIM (NYSE:TIMB – Get Free Report) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Insider and Institutional Ownership
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, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares SurgePays and TIM”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SurgePays | $56.96 million | 0.08 | -$36.07 million | ($1.53) | -0.11 |
| TIM | $4.77 billion | 1.81 | $772.28 million | $1.69 | 10.56 |
TIM has higher revenue and earnings than SurgePays. SurgePays is trading at a lower price-to-earnings ratio than TIM, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for SurgePays and TIM, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SurgePays | 1 | 1 | 1 | 0 | 2.00 |
| TIM | 1 | 9 | 2 | 1 | 2.23 |
SurgePays currently has a consensus price target of $3.50, suggesting a potential upside of 1,952.79%. TIM has a consensus price target of $24.82, suggesting a potential upside of 39.03%. Given SurgePays’ higher possible upside, research analysts clearly believe SurgePays is more favorable than TIM.
Profitability
This table compares SurgePays and TIM’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SurgePays | -47.89% | N/A | -274.37% |
| TIM | 15.73% | 17.99% | 7.74% |
Risk and Volatility
SurgePays has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, TIM has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.
Summary
TIM beats SurgePays on 11 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 TIM
TIM S.A., a telecommunications company, provides mobile voice, data, and broadband services in Brazil. The company offers in mobile, landline, long-distance, and data transmission services. It also offers fixed ultra-broadband, fixed ultraband broadband, and digital content services. The company serves individuals and corporates, as well as small, medium, and large companies. TIM S.A is based in Rio de Janeiro, Brazil. The company operates as a subsidiary of TIM Brasil Serviços e Participações S.A.
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