Head-To-Head Comparison: Surge Component (OTCMKTS:SPRS) vs. nVent Electric (NYSE:NVT)

nVent Electric (NYSE:NVT) and Surge Component (OTCMKTS:SPRS) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for nVent Electric and Surge Component, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
nVent Electric	0	0	9	1	3.10
Surge Component	0	0	0	0	0.00

nVent Electric presently has a consensus target price of $123.25, indicating a potential upside of 20.68%. Given nVent Electric’s stronger consensus rating and higher possible upside, research analysts clearly believe nVent Electric is more favorable than Surge Component.

Insider & Institutional Ownership

90.1% of nVent Electric shares are held by institutional investors. 1.8% of nVent Electric shares are held by insiders. Comparatively, 56.0% of Surge Component shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares nVent Electric 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
nVent Electric	$3.01 billion	5.48	$331.80 million	$3.63	28.13
Surge Component	$31.21 million	0.64	$830,000.00	$0.15	22.67

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
nVent Electric	16.83%	14.29%	7.42%
Surge Component	2.56%	4.49%	3.47%

Volatility & Risk

nVent Electric has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Surge Component has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Summary

nVent Electric beats Surge Component on 14 of the 15 factors compared between the two stocks.

About nVent Electric

nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.

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.