Financial Review: SurgePays (NASDAQ:SURG) & Powerstorm (OTCMKTS:PSTO)

Powerstorm (OTCMKTS:PSTO) and SurgePays (NASDAQ:SURG) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

6.9% of SurgePays shares are owned by institutional investors. 29.4% of SurgePays shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Powerstorm	N/A	N/A	N/A	N/A	N/A
SurgePays	$83.60 million	0.43	$20.62 million	($1.13)	-1.58

SurgePays has higher revenue and earnings than Powerstorm.

Risk & Volatility

Powerstorm has a beta of -0.72, suggesting that its stock price is 172% less volatile than the S&P 500. Comparatively, SurgePays has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Powerstorm	0	0	0	0	0.00
SurgePays	0	1	1	0	2.50

SurgePays has a consensus target price of $8.50, suggesting a potential upside of 374.86%. Given SurgePays’ stronger consensus rating and higher possible upside, analysts clearly believe SurgePays is more favorable than Powerstorm.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Powerstorm	N/A	N/A	N/A
SurgePays	-27.39%	-55.63%	-43.61%

Summary

SurgePays beats Powerstorm on 7 of the 10 factors compared between the two stocks.

About Powerstorm

Powerstorm Holdings, Inc. operates a consortium of privately held sustainability-themed companies acquired for growth. Its scope of action targets SMEs in 5 themes, including real estate and heritage, telecom and fiber, power and alternative energy, food and aquatic innovation, and electric mobility. The company was incorporated in 2011 and is based in Dover, Delaware.

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.