Critical Comparison: Koninklijke KPN (OTCMKTS:KKPNY) & SurgePays (NASDAQ:SURG)

Koninklijke KPN (OTCMKTS:KKPNY) and SurgePays (NASDAQ:SURG) are both utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Insider & Institutional Ownership

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

Analyst Ratings

This is a summary of current recommendations and price targets for Koninklijke KPN and SurgePays, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koninklijke KPN	0	0	0	0	0.00
SurgePays	0	1	1	0	2.50

SurgePays has a consensus target price of $8.50, suggesting a potential upside of 564.06%. Given SurgePays’ stronger consensus rating and higher possible upside, analysts plainly believe SurgePays is more favorable than Koninklijke KPN.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koninklijke KPN	$5.93 billion	2.52	$913.46 million	N/A	N/A
SurgePays	$83.60 million	0.31	$20.62 million	($1.13)	-1.13

Koninklijke KPN has higher revenue and earnings than SurgePays.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Koninklijke KPN	N/A	N/A	N/A
SurgePays	-27.39%	-55.63%	-43.61%

Volatility & Risk

Koninklijke KPN has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, SurgePays has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

About Koninklijke KPN

Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. It operates through Consumer; Business; Wholesale; and Network, Operations & IT segments. The company offers fixed and mobile telephony, fixed and mobile broadband internet, and television services to retail and business consumers; infrastructure and network related IT solutions to business customers; and wholesale network services to third parties. It also provides IT services, including cloud, workspace, and cybersecurity services; interconnect traffic, visitor roaming, and digital products; and NL-ix, an interconnect exchange, as well as sells handsets, peripheral equipment, and software licenses. In addition, the company offers virus and malware scanners; anti-virus licenses; 1Password, a password management tool; DNSSEC, a technology that prevents customers from being led to fake websites; KPN Veilig Netwerk Thuis, a smart network security; Censornet, which includes web security, cloud application security broker, email protection, and awareness training; SuperVision, which provides digital governance solutions for workspaces; and OneMonitoring to ensure early detection of cyber incidents. Further, it provides fiber networks; and IT services for integrating healthcare systems and optimizing communication between healthcare providers. The company distributes its products and services under the KPN, XS4ALL, Simyo, KPN Security, KPN Health, Solcon, Inspark, and KPN Partner Network brands. The company was formerly known as Koninklijke PTT Nederland NV and changed its name to Koninklijke KPN N.V. in June 1998. Koninklijke KPN N.V. was founded in 1881 and is headquartered in Rotterdam, the Netherlands.

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.