Contrasting Crexendo (NASDAQ:CXDO) & SurgePays (NASDAQ:SURG)

Crexendo (NASDAQ:CXDO) and SurgePays (NASDAQ:SURG) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

9.5% of Crexendo shares are held by institutional investors. Comparatively, 6.9% of SurgePays shares are held by institutional investors. 56.6% of Crexendo shares are held by insiders. Comparatively, 29.4% of SurgePays shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Crexendo	3.01%	10.88%	8.59%
SurgePays	12.93%	55.35%	35.53%

Analyst Ratings

This is a summary of current ratings and recommmendations for Crexendo and SurgePays, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crexendo	0	0	2	0	3.00
SurgePays	0	1	1	0	2.50

Crexendo presently has a consensus price target of $6.38, indicating a potential upside of 96.15%. SurgePays has a consensus price target of $9.50, indicating a potential upside of 179.41%. Given SurgePays’ higher possible upside, analysts plainly believe SurgePays is more favorable than Crexendo.

Volatility and Risk

Crexendo has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, SurgePays has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares Crexendo and SurgePays’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crexendo	$53.20 million	1.63	-$360,000.00	$0.05	65.00
SurgePays	$137.14 million	0.48	$20.62 million	$1.15	2.96

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

About Crexendo

Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.

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.