SoftBank Group (OTCMKTS:SFTBY) & SurgePays (NASDAQ:SURG) Financial Comparison

SurgePays (NASDAQ:SURG) and SoftBank Group (OTCMKTS:SFTBY) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for SurgePays and SoftBank Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SurgePays	2	0	1	0	1.67
SoftBank Group	1	3	5	0	2.44

SurgePays currently has a consensus target price of $3.50, indicating a potential upside of 1,564.29%. Given SurgePays’ higher probable upside, equities analysts clearly believe SurgePays is more favorable than SoftBank Group.

Profitability

This table compares SurgePays and SoftBank Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SurgePays	-64.91%	N/A	-310.16%
SoftBank Group	64.12%	28.68%	9.44%

Valuation & Earnings

This table compares SurgePays and SoftBank Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SurgePays	$56.96 million	0.09	-$36.07 million	($1.94)	-0.11
SoftBank Group	$51.81 billion	3.93	$33.01 billion	$2.90	6.15

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

Risk & Volatility

SurgePays has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, SoftBank Group has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500.

Insider and Institutional Ownership

6.9% of SurgePays shares are owned by institutional investors. Comparatively, 0.0% of SoftBank Group shares are owned by institutional investors. 29.1% of SurgePays shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

SoftBank Group beats SurgePays on 11 of the 14 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 SoftBank Group

SoftBank Group Corp. provides telecommunication services in Japan and internationally. It operates through Investment Business of Holding Companies, SoftBank Vision Funds, SoftBank, Arm, and Other segments. The company offers mobile communications and solutions to enterprise customers, and broadband services to retail customers; and sells mobile devices and software tools, as well as related services. It also provides internet advertising and e-commerce services; payment and financial services; ICT services products to enterprise customers; and communication device-related products and IoT equipment to retail customers. In addition, the company engages in design of microprocessor intellectual property and related technology; alternative investment management; ownership of professional baseball team; operation of baseball games; management and maintenance of baseball stadium and other sports facilities; distribution of video, voice, and data content via media businesses. Further, it engages in the certification services, security solutions, and Linux / OSS businesses; operation of comprehensive IT information site ITmedia; sale of indirect materials such as consumable supplies; facility management; planning and operation of fashion e-commerce website; operational support of brands' own e-commerce website; operation of fashion coordination app; management of few funds; generation of electricity from renewable energy sources; and supply and sale of electricity. The company was formerly known as SoftBank Corp. and changed its name to SoftBank Group Corp. in July 2015. SoftBank Group Corp. was incorporated in 1981 and is headquartered in Tokyo, Japan.