uCloudlink Group (NASDAQ:UCL – Get Free Report) and SurgePays (NASDAQ:SURG – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Volatility & Risk
uCloudlink Group has a beta of 4.14, suggesting that its share price is 314% more volatile than the S&P 500. Comparatively, SurgePays has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.
Profitability
This table compares uCloudlink Group and SurgePays’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| uCloudlink Group | -0.31% | -0.88% | -0.37% |
| SurgePays | -47.89% | N/A | -274.37% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| uCloudlink Group | 2 | 0 | 0 | 0 | 1.00 |
| SurgePays | 1 | 1 | 1 | 0 | 2.00 |
SurgePays has a consensus target price of $3.50, suggesting a potential upside of 2,236.45%. Given SurgePays’ stronger consensus rating and higher probable upside, analysts clearly believe SurgePays is more favorable than uCloudlink Group.
Valuation & Earnings
This table compares uCloudlink Group and SurgePays”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| uCloudlink Group | $81.45 million | 0.15 | $6.30 million | ($0.01) | -31.40 |
| SurgePays | $56.96 million | 0.14 | -$36.07 million | ($1.53) | -0.10 |
uCloudlink Group has higher revenue and earnings than SurgePays. uCloudlink Group is trading at a lower price-to-earnings ratio than SurgePays, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
85.5% of uCloudlink Group shares are held by institutional investors. Comparatively, 6.9% of SurgePays shares are held by institutional investors. 54.6% of uCloudlink Group 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, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
uCloudlink Group beats SurgePays on 9 of the 14 factors compared between the two stocks.
About uCloudlink Group
uCloudlink Group Inc. operates as a mobile data traffic sharing marketplace in the telecommunications industry. The company provides uCloudlink 1.0, a model that focuses on cross-border travelers that need mobile data connectivity services in various countries; and operates portable Wi-Fi services under the Roamingman name in China and Malaysia, which provides global mobile data connectivity services, as well as offers GlocalMe portable Wi-Fi terminals and cloud SIM architecture for mobile virtual network operators, mobile network operators (MNOs), and portable Wi-Fi terminal rental companies. It also offers uCloudlink 2.0, a model that provides mobile data connectivity services to local users through various MNOs; GlocalMe Inside, an implementation solution for smartphones and other smart hardware products, which enables them to access its cloud SIM architecture and SIM card pool; and GlocalMe, a world phone series. In addition, the company provides IoT modules with GlocalMe Inside implementation to meet the demand for mobile data from various terminals, as well as provides integrated network solutions to its customers; SIM cards with prepaid data packages; and value-added services, such as advertisement. Further, it's platform-as-a-service/software-as-a-service offers modules, such as customer relationship management, operations and business support system, and SIM card enterprise resource planning and management. uCloudlink Group Inc. was incorporated in 2014 and is headquartered in Tsim Sha Tsui, Hong Kong.
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.
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