FingerMotion (NASDAQ:FNGR) versus SurgePays (NASDAQ:SURG) Critical Analysis

SurgePays (NASDAQ:SURG) and FingerMotion (NASDAQ:FNGR) are both small-cap communication services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SurgePays and FingerMotion, as provided by MarketBeat.com.

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

SurgePays presently has a consensus price target of $3.50, suggesting a potential upside of 986.96%. Given SurgePays’ stronger consensus rating and higher possible upside, analysts clearly believe SurgePays is more favorable than FingerMotion.

Insider & Institutional Ownership

6.9% of SurgePays shares are held by institutional investors. Comparatively, 3.9% of FingerMotion shares are held by institutional investors. 29.1% of SurgePays shares are held by insiders. Comparatively, 19.5% of FingerMotion shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

SurgePays has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, FingerMotion has a beta of -0.39, suggesting that its stock price is 139% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SurgePays	$56.96 million	0.14	-$36.07 million	($1.94)	-0.17
FingerMotion	$24.13 million	0.84	-$7.00 million	($0.12)	-2.76

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

Profitability

This table compares SurgePays and FingerMotion’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%
FingerMotion	-42.81%	-46.67%	-11.91%

Summary

SurgePays beats FingerMotion on 9 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 FingerMotion

FingerMotion, Inc., a mobile data specialist company, provides mobile payment and recharge platform system in China. The company offers telecommunication products and services, including data plans, subscription plans, mobile phones, and loyalty points redemption services; bulk short message service and multimedia messaging services; and Rich Communication Services (RCS) platform, a proprietary business messaging platform that enables businesses and brands to communicate and service their customers on the 5G infrastructure. It also operates Sapientus, a proprietary big data insights platform that deliver data-driven for businesses in the insurance, healthcare, and financial services industries. In addition, the company offers value added product and services. FingerMotion, Inc. is headquartered in Singapore.