Head-To-Head Survey: Frontier Communications (OTCMKTS:FTRCQ) and SurgePays (NASDAQ:SURG)

Frontier Communications (OTCMKTS:FTRCQ) and SurgePays (NASDAQ:SURG) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Frontier Communications and SurgePays, as provided by MarketBeat.com.

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

SurgePays has a consensus price target of $8.50, indicating a potential upside of 520.44%. Given SurgePays’ stronger consensus rating and higher possible upside, analysts plainly believe SurgePays is more favorable than Frontier Communications.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Frontier Communications	-3.19%	-3.61%	-0.91%
SurgePays	-27.39%	-55.63%	-43.61%

Institutional & Insider Ownership

6.9% of SurgePays shares are owned by institutional investors. 1.7% of Frontier Communications shares are owned by insiders. Comparatively, 29.4% of SurgePays shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Frontier Communications	$5.75 billion	N/A	$29.00 million	N/A	N/A
SurgePays	$83.60 million	0.33	$20.62 million	($1.13)	-1.21

Frontier Communications has higher revenue and earnings than SurgePays.

About Frontier Communications

Frontier Communications Corporation provides communications services to consumer, commercial, and wholesale customers in the United States. It offers broadband, video, voice, and other services and products through a combination of fiber and copper-based networks to consumer customers. The company also provides Ethernet and traditional circuit-based services; software defined wide area network, managed Wi-Fi and cloud IT solutions, voice and Unified Communications as a Service (UCaaS), and Voice over Internet Protocol (VoIP) services, as well as hardware and network solutions and services to small and medium business, and large enterprises. In addition, it offers data and Internet services; wireless broadband services; satellite TV video services; voice services, including data-based VoIP, UCaaS, and long distance and voice messaging services; and a package of communications services. Further, the company provides a range of access services that allow other carriers to use facilities to originate and terminate their local and long-distance voice traffic. It serves approximately 3.6 million customers and 3.1 million broadband subscribers in 25 states. The company was formerly known as Citizens Communications Company and changed its name to Frontier Communications Corporation in July 2008. Frontier Communications Corporation was incorporated in 1935 and is based in Norwalk, Connecticut. On April 14, 2020, Frontier Communications Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

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.