Head to Head Survey: Gogo (NASDAQ:GOGO) vs. Its Peers

Gogo (NASDAQ: GOGO) is one of 36 publicly-traded companies in the “Wireless Telecommunications Services” industry, but how does it weigh in compared to its peers? We will compare Gogo to similar businesses based on the strength of its risk, valuation, institutional ownership, profitability, earnings, dividends and analyst recommendations.

Profitability

This table compares Gogo and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gogo -22.58% N/A -11.62%
Gogo Competitors -1,004.72% 0.81% -7.68%

Earnings and Valuation

This table compares Gogo and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Gogo $645.47 million $74.39 million -5.43
Gogo Competitors $29.44 billion $8.63 billion 6.78

Gogo’s peers have higher revenue and earnings than Gogo. Gogo is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

66.6% of Gogo shares are owned by institutional investors. Comparatively, 40.3% of shares of all “Wireless Telecommunications Services” companies are owned by institutional investors. 37.3% of Gogo shares are owned by insiders. Comparatively, 12.5% of shares of all “Wireless Telecommunications Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Gogo and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gogo 1 1 3 0 2.40
Gogo Competitors 517 1600 1762 58 2.35

Gogo currently has a consensus target price of $14.19, suggesting a potential upside of 42.02%. As a group, “Wireless Telecommunications Services” companies have a potential upside of 20.23%. Given Gogo’s stronger consensus rating and higher possible upside, research analysts plainly believe Gogo is more favorable than its peers.

Risk & Volatility

Gogo has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, Gogo’s peers have a beta of 0.78, indicating that their average stock price is 22% less volatile than the S&P 500.

Summary

Gogo beats its peers on 7 of the 12 factors compared.

About Gogo

Gogo Inc. is a holding company. The Company is a provider of in-flight broadband connectivity and connectivity-enabled services to commercial and business aviation. The Company operates through three segments: Commercial Aviation North America (CA-NA), Commercial Aviation Rest of World (CA-ROW) and Business Aviation (BA). The CA-NA segment offers air-to-ground (ATG) and satellite connectivity and entertainment services to commercial aircraft flying routes generally within North America. The CA-ROW segment offers satellite connectivity and entertainment services, using 2Ku and Ku solutions, to commercial aircraft flying routes outside of North America. The Company’s BA segment offers a suite of integrated equipment, network and Internet connectivity products and services to the business aviation market. As of December 31, 2016, it provided services on 2,943 commercial aircraft. The Company offers a package of airborne equipment for its ATG-4/ATG and satellite services.

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