Critical Review: SurgePays (NASDAQ:SURG) & Amesite (NASDAQ:AMST)

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

Institutional and Insider Ownership

6.9% of SurgePays shares are owned by institutional investors. Comparatively, 3.6% of Amesite shares are owned by institutional investors. 30.5% of SurgePays shares are owned by insiders. Comparatively, 36.0% of Amesite shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SurgePays	-83.42%	-967.32%	-232.66%
Amesite	-1,024.91%	-118.33%	-103.03%

Volatility and Risk

SurgePays has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Amesite has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for SurgePays and Amesite, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SurgePays	2	0	1	0	1.67
Amesite	1	0	0	0	1.00

SurgePays presently has a consensus target price of $9.75, suggesting a potential upside of 1,004.94%. Given SurgePays’ stronger consensus rating and higher probable upside, analysts clearly believe SurgePays is more favorable than Amesite.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SurgePays	$60.88 million	0.34	-$45.73 million	($2.14)	-0.41
Amesite	$110,000.00	77.27	-$3.62 million	($0.64)	-2.91

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

Amesite Inc., an artificial intelligence driven platform and course designer, that provides online products in the United States. The company uses machine learning to offer a mass customized experience to learners. It serves businesses, universities and colleges, K-12 schools, museums, and non-profit organizations. Amesite Inc. was incorporated in 2017 and is headquartered in Detroit, Michigan.