Critical Comparison: Charge Enterprises (NASDAQ:CRGE) & SITO Mobile (OTCMKTS:SITOQ)

SITO Mobile (OTCMKTS:SITOQ) and Charge Enterprises (NASDAQ:CRGE) are both small-cap communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Volatility & Risk

SITO Mobile has a beta of -0.65, indicating that its share price is 165% less volatile than the S&P 500. Comparatively, Charge Enterprises has a beta of 2.49, indicating that its share price is 149% more volatile than the S&P 500.

Earnings and Valuation

This table compares SITO Mobile and Charge Enterprises’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SITO Mobile	N/A	N/A	N/A	N/A	N/A
Charge Enterprises	$641.37 million	0.36	-$30.35 million	($0.20)	-5.43

SITO Mobile has higher earnings, but lower revenue than Charge Enterprises.

Insider and Institutional Ownership

21.2% of Charge Enterprises shares are owned by institutional investors. 2.2% of SITO Mobile shares are owned by company insiders. Comparatively, 25.2% of Charge Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for SITO Mobile and Charge Enterprises, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SITO Mobile	0	0	0	0	N/A
Charge Enterprises	0	1	1	0	2.50

Charge Enterprises has a consensus target price of $4.50, suggesting a potential upside of 314.17%. Given Charge Enterprises’ higher possible upside, analysts plainly believe Charge Enterprises is more favorable than SITO Mobile.

Profitability

This table compares SITO Mobile and Charge Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SITO Mobile	N/A	N/A	N/A
Charge Enterprises	-5.76%	-136.79%	-20.11%

Summary

Charge Enterprises beats SITO Mobile on 6 of the 9 factors compared between the two stocks.

About SITO Mobile

SITO Mobile, Ltd. provides advertisement delivery, measurement and attribution, and consumer insights using its proprietary location-based marketing intelligence platform in the United States and Canada. It offers Ad Placement, which delivers advertisements on behalf of its customers to audiences of existing and prospective consumers in a privacy compliant manner; and advertisements across television, desktop, social media, and digital out of home platforms. The company also provides measurement and attribution products, including Real-time Verified Walk-In, a platform built in-house working in tandem with a data management platform and demand side platform; Location, Audience and Behavior Sciences reports that provide an analysis of a customer's audience, breaking down location, and purchase and demographic data against various control groups for selected targeted audiences in real time; and Purchase Science Reports, which offer transaction data to make marketing campaigns relevant and measurable. In addition, it offers Insights products, such as Consumer Behavior and Location Sciences, which explores the consumers and presents information and actionable insights for executives and strategic decision makers looking to understand and influence consumer behaviors. The company provides its services to brands, advertising agencies, out-of-home advertisers, media companies, and non-media companies through salesforce and account management teams. The company was formerly known as Single Touch Systems, Inc. and changed its name to SITO Mobile, Ltd. in September 2014. SITO Mobile, Ltd. was incorporated in 2000 and is based in Jersey City, New Jersey.

About Charge Enterprises

Charge Enterprises Inc. operates as an electrical, broadband, and electric vehicle (EV) charging infrastructure company. The company provides clients with end-to-end project management services, including advising, designing, engineering, acquiring and installing equipment, monitoring, servicing, and maintenance. It operates in two segments, Infrastructure and Telecommunications. The Infrastructure segment offers broadband and wireless, electrical contracting, electric vehicle charging, and fleet services. The Telecommunications segment provides internet-protocol-based and time-division multiplexing access for transport of long-distance voice and data minutes; domestic switching and related peripheral equipment services, and carrier-grade routers and switches for internet and circuit-based services, as well as connection of voice calls and data services. The company was formerly known as TransWorld Holdings Inc and changed its name to Charge Enterprises, Inc. in January 2021. Charge Enterprises, Inc. was incorporated in 2003 and is based in New York, New York. On March 7, 2024, Charge Enterprises, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.