Comparing Gogo (GOGO) and Mobil'nye Telesistemy PAO (MBT)

Gogo (NASDAQ: GOGO) and Mobil'nye Telesistemy PAO (NYSE:MBT) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Risk and Volatility

Gogo has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Mobil'nye Telesistemy PAO has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Insider and Institutional Ownership

70.5% of Gogo shares are held by institutional investors. Comparatively, 31.8% of Mobil'nye Telesistemy PAO shares are held by institutional investors. 37.3% of Gogo shares are held by insiders. Comparatively, 1.0% of Mobil'nye Telesistemy PAO shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Gogo and Mobil'nye Telesistemy PAO’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gogo $596.55 million 1.34 -$124.50 million ($1.99) -4.62
Mobil'nye Telesistemy PAO $5.80 billion 2.08 $727.11 million $0.98 12.38

Mobil'nye Telesistemy PAO has higher revenue and earnings than Gogo. Gogo is trading at a lower price-to-earnings ratio than Mobil'nye Telesistemy PAO, indicating that it is currently the more affordable of the two stocks.

Dividends

Mobil'nye Telesistemy PAO pays an annual dividend of $0.70 per share and has a dividend yield of 5.8%. Gogo does not pay a dividend. Mobil'nye Telesistemy PAO pays out 71.4% of its earnings in the form of a dividend.

Profitability

This table compares Gogo and Mobil'nye Telesistemy PAO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gogo -23.51% N/A -12.24%
Mobil'nye Telesistemy PAO 13.61% 43.01% 10.55%

Analyst Recommendations

This is a summary of recent ratings and target prices for Gogo and Mobil'nye Telesistemy PAO, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gogo 1 1 3 0 2.40
Mobil'nye Telesistemy PAO 0 2 3 0 2.60

Gogo presently has a consensus price target of $14.19, suggesting a potential upside of 54.21%. Mobil'nye Telesistemy PAO has a consensus price target of $10.47, suggesting a potential downside of 13.71%. Given Gogo’s higher possible upside, research analysts clearly believe Gogo is more favorable than Mobil'nye Telesistemy PAO.

Summary

Mobil'nye Telesistemy PAO beats Gogo on 10 of the 15 factors compared between the two stocks.

Gogo Company Profile

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.

Mobil'nye Telesistemy PAO Company Profile

Mobil’nye Telesistemy PAO is a Russia-based provider of telecommunications services. The Company provides mobile and fixed-line voice and data telecommunications services, including data transfer, broadband, pay-television (pay-TV) and various value-added services, as well as selling equipment and accessories. The Company operates through segments, which include Russia convergent, Moscow fixed line and Ukraine. Its Russia Convergent segment includes mobile and fixed-line operations, which encompasses services rendered to customers across regions of Russia, including voice and data services, transmission, broadband, pay-TV and other value-added services. Its Moscow fixed-line segment includes fixed-line operations carried out in Moscow by the Company’s subsidiary MGTS. Its Ukraine segment includes mobile and fixed-line operations carried out across multiple regions of Ukraine. The Company also offers software solutions, such as LiteBox, a cloud-based tool for online cash operations.

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