Analyzing Nippon Telegraph and Telephone (OTCMKTS:NTTYY) and SurgePays (NASDAQ:SURG)

Nippon Telegraph and Telephone (OTCMKTS:NTTYY) and SurgePays (NASDAQ:SURG) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.

Institutional and Insider Ownership

0.1% of Nippon Telegraph and Telephone shares are held by institutional investors. Comparatively, 6.9% of SurgePays shares are held by institutional investors. 29.4% of SurgePays shares are held 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.

Volatility & Risk

Nippon Telegraph and Telephone has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, SurgePays has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Valuation and Earnings

This table compares Nippon Telegraph and Telephone and SurgePays”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nippon Telegraph and Telephone	$92.65 billion	0.96	$8.83 billion	$2.30	11.29
SurgePays	$83.60 million	0.45	$20.62 million	($1.13)	-1.65

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

Profitability

This table compares Nippon Telegraph and Telephone and SurgePays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Telegraph and Telephone	8.56%	10.83%	4.00%
SurgePays	-27.39%	-55.63%	-43.61%

Analyst Recommendations

This is a breakdown of recent ratings for Nippon Telegraph and Telephone and SurgePays, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nippon Telegraph and Telephone	0	0	0	0	0.00
SurgePays	0	1	1	0	2.50

SurgePays has a consensus price target of $9.00, suggesting a potential upside of 383.87%. Given SurgePays’ stronger consensus rating and higher probable upside, analysts plainly believe SurgePays is more favorable than Nippon Telegraph and Telephone.

Summary

Nippon Telegraph and Telephone beats SurgePays on 8 of the 14 factors compared between the two stocks.

About Nippon Telegraph and Telephone

Nippon Telegraph and Telephone Corporation operates as a telecommunications company in Japan and internationally. It operates through Integrated ICT Business, Regional Communications Business, Global Solutions Business, and Others segments. The Integrated ICT Business segment offers mobile phone, domestic inter-prefectural communications, international communications, solutions, and system development and related services. The Regional Communications Business segment provides intra-prefectural communications and related ancillary services. The Global Solutions Business segment offers consulting, system and software development, network system, cloud, global data center, and related services. The Others segment engages in the real estate, energy, and other businesses. The company was founded in 1952 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.