Head to Head Comparison: Gogo (GOGO) & Intelsat (I)

Gogo (NASDAQ: GOGO) and Intelsat (NYSE:I) are both small-cap telecommunications services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gogo and Intelsat, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gogo 1 1 3 0 2.40
Intelsat 0 3 0 0 2.00

Gogo currently has a consensus price target of $14.19, suggesting a potential upside of 63.26%. Intelsat has a consensus price target of $4.83, suggesting a potential upside of 61.65%. Given Gogo’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gogo is more favorable than Intelsat.

Risk and Volatility

Gogo has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Intelsat has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Profitability

This table compares Gogo and Intelsat’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%
Intelsat 26.57% N/A -0.78%

Institutional & Insider Ownership

70.9% of Gogo shares are held by institutional investors. Comparatively, 36.6% of Intelsat shares are held by institutional investors. 37.3% of Gogo shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Gogo and Intelsat’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gogo $596.55 million 1.26 -$124.50 million ($1.99) -4.37
Intelsat $2.19 billion 0.16 $990.19 million $5.18 0.58

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

Summary

Intelsat beats Gogo on 7 of the 13 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.

Intelsat Company Profile

Intelsat S.A. operates in satellite services business. The Company provides satellite services to its communications customers around the world. It provides communications services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, multinational corporations and Internet service providers (ISPs). The Company is also a provider of commercial satellite communication services to the United States Government and other select military organizations and their contractors. The Company focuses on business-to-business services, indirectly enable enterprise, government and consumer applications through its customers. The Company has operations in North America, Europe, Latin America and Caribbean, Africa and Middle East, and Asia Pacific.

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