Analyzing Freshworks (NASDAQ:FRSH) & SurgePays (NASDAQ:SURG)

Freshworks (NASDAQ:FRSH) and SurgePays (NASDAQ:SURG) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Freshworks and SurgePays, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freshworks	1	7	6	1	2.47
SurgePays	2	0	1	0	1.67

Freshworks presently has a consensus price target of $12.18, suggesting a potential upside of 23.67%. SurgePays has a consensus price target of $3.50, suggesting a potential upside of 845.95%. Given SurgePays’ higher possible upside, analysts plainly believe SurgePays is more favorable than Freshworks.

Insider & Institutional Ownership

75.6% of Freshworks shares are held by institutional investors. Comparatively, 6.9% of SurgePays shares are held by institutional investors. 8.5% of Freshworks shares are held by insiders. Comparatively, 29.1% of SurgePays shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freshworks	20.69%	4.27%	2.74%
SurgePays	-64.91%	-967.32%	-310.16%

Volatility and Risk

Freshworks has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, SurgePays has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Valuation and Earnings

This table compares Freshworks and SurgePays”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freshworks	$838.81 million	3.25	$183.72 million	$0.62	15.89
SurgePays	$62.37 million	0.15	-$36.07 million	($1.94)	-0.19

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

Summary

Freshworks beats SurgePays on 13 of the 15 factors compared between the two stocks.

About Freshworks

Freshworks Inc., a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels. The company also provides Freshsales, an advanced and user-friendly sales automation solution; Freshmarketer, a marketing automation solution for businesses to redefine their marketing strategies; Freshsales Suite, which offers businesses a unified platform that facilitates cohesive engagement and detailed tracking of customers throughout their entire buying journey; Freshservice that offers virtual agents to help employees resolve issues, make requests, and answer questions without contacting the service desk; and Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data. In addition, it offers Freshping to monitor website’s availability and get multichannel alerts if the website goes down; Freshstatus, which allows businesses to create a custom branded website status page for internal or external viewing to communicate website uptime and availability; and Freshsurvey to measure net promoter scores and other satisfaction metrics directly within Freshworks products. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.

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.