Analyzing Surge Component (OTCMKTS:SPRS) and TTM Technologies (NASDAQ:TTMI)

TTM Technologies (NASDAQ:TTMI) and Surge Component (OTCMKTS:SPRS) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Earnings and Valuation

This table compares TTM Technologies and Surge Component”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TTM Technologies	$2.44 billion	3.03	$56.30 million	$1.26	56.92
Surge Component	$31.21 million	0.60	$830,000.00	$0.15	21.33

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

Profitability

This table compares TTM Technologies and Surge Component’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TTM Technologies	4.74%	13.21%	6.03%
Surge Component	2.56%	4.49%	3.47%

Insider and Institutional Ownership

95.8% of TTM Technologies shares are owned by institutional investors. 1.3% of TTM Technologies shares are owned by insiders. Comparatively, 56.0% of Surge Component shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

TTM Technologies has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Surge Component has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for TTM Technologies and Surge Component, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TTM Technologies	0	0	5	1	3.17
Surge Component	0	0	0	0	0.00

TTM Technologies presently has a consensus target price of $76.50, suggesting a potential upside of 6.66%. Given TTM Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe TTM Technologies is more favorable than Surge Component.

Summary

TTM Technologies beats Surge Component on 14 of the 15 factors compared between the two stocks.

About TTM Technologies

TTM Technologies, Inc., together with its subsidiaries, manufactures and sells mission systems, radio frequency (RF) components and RF microwave/microelectronic assemblies, and printed circuit boards (PCB) worldwide. The company operates in two segments, PCB and RF&S Components. It offers range of engineered systems, RF and microwave assemblies, HDI PCBs, flexible PCBs, rigid-flex PCBs, custom assemblies and system integration, IC substrates, passive RF components, advanced ceramic RF components, hi-reliability multi-chip modules, beamforming and switching networks, PCB products, RF components, and backplane/custom assembly solutions, including conventional PCBs. It also provides advanced ceramic RF components including standard and etched thick-film ceramic substrates; and hi-reliability multi-chip modules. In addition, the company offers radar systems including maritime surveillance and weather avoidance radar systems, surveillance products, communication systems, RF assembly and test services, and passive RF components. Further, the company provides custom designed application specific integrated circuits, high density interconnect, IC substrates, flexible and rigid flex PCBs, and custom assemblies including backplane and mid-plane assemblies, flexible and rigid-flex assemblies, and RF assemblies, as well as conventional PCBs, such as single-sided, double-sided, and multi-layer boards. Additionally, it offers quick turnaround services, which includes prototype production and ramp-to-volume production, and thermal management. The company serves original equipment manufacturers and electronic manufacturing services providers, original design manufacturers, distributors, and government agencies; and aerospace and defense, data center computing, automotive, medical, industrial, and instrumentation, as well as networking applications. TTM Technologies, Inc. was incorporated in 1978 and is headquartered in Santa Ana, California.

About Surge Component

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, circuit protection devices, and audible components comprising audible transducers, Piezo buzzers, speakers, and microphones. The company also provides resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. Its products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. The company sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in Canada, China, other Asian countries, South America, and Europe. Surge Components, Inc. was incorporated in 1981 and is headquartered in Deer Park, New York.