Gogo (NASDAQ: GOGO) and Mobile TeleSystems OJSC (NYSE:MBT) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
This table compares Gogo and Mobile TeleSystems OJSC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mobile TeleSystems OJSC||13.61%||43.01%||10.55%|
Gogo has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Mobile TeleSystems OJSC has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.
Valuation & Earnings
This table compares Gogo and Mobile TeleSystems OJSC’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||1.51||-$124.50 million||($1.99)||-5.20|
|Mobile TeleSystems OJSC||$5.80 billion||1.88||$727.11 million||$0.98||11.17|
Mobile TeleSystems OJSC has higher revenue and earnings than Gogo. Gogo is trading at a lower price-to-earnings ratio than Mobile TeleSystems OJSC, indicating that it is currently the more affordable of the two stocks.
Mobile TeleSystems OJSC pays an annual dividend of $0.70 per share and has a dividend yield of 6.4%. Gogo does not pay a dividend. Mobile TeleSystems OJSC pays out 71.4% of its earnings in the form of a dividend.
Insider and Institutional Ownership
69.8% of Gogo shares are owned by institutional investors. Comparatively, 32.1% of Mobile TeleSystems OJSC shares are owned by institutional investors. 37.3% of Gogo shares are owned by company insiders. Comparatively, 1.0% of Mobile TeleSystems OJSC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings for Gogo and Mobile TeleSystems OJSC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mobile TeleSystems OJSC||0||3||2||0||2.40|
Gogo presently has a consensus price target of $14.19, indicating a potential upside of 37.08%. Mobile TeleSystems OJSC has a consensus price target of $10.47, indicating a potential downside of 4.41%. Given Gogo’s higher probable upside, equities analysts plainly believe Gogo is more favorable than Mobile TeleSystems OJSC.
Mobile TeleSystems OJSC beats Gogo on 9 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.
Mobile TeleSystems OJSC 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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