Critical Analysis: Gogo (NASDAQ:GOGO) versus Mobivity (OTCMKTS:MFON)

Gogo (NASDAQ:GOGO) and Mobivity (OTCMKTS:MFON) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Profitability

This table compares Gogo and Mobivity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gogo	1.05%	88.04%	5.97%
Mobivity	N/A	N/A	-534.86%

Volatility & Risk

Gogo has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Mobivity has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Institutional & Insider Ownership

69.6% of Gogo shares are held by institutional investors. Comparatively, 12.9% of Mobivity shares are held by institutional investors. 25.8% of Gogo shares are held by insiders. Comparatively, 40.0% of Mobivity shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Gogo and Mobivity”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gogo	$444.71 million	3.69	$13.75 million	$0.04	307.25
Mobivity	$1.14 million	15.70	-$10.23 million	($0.15)	-1.61

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Gogo and Mobivity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gogo	0	1	2	0	2.67
Mobivity	0	0	0	0	0.00

Gogo currently has a consensus price target of $14.8333, suggesting a potential upside of 20.69%. Given Gogo’s stronger consensus rating and higher possible upside, analysts plainly believe Gogo is more favorable than Mobivity.

Summary

Gogo beats Mobivity on 12 of the 14 factors compared between the two stocks.

About Gogo

Gogo Inc., together with its subsidiaries, provides broadband connectivity services to the aviation industry in the United States and internationally. The company's product platform includes networks, antennas, and airborne equipment and software. It offers in-flight systems; in-flight services; aviation partner support; and engineering, design, and development services, as well as production operations functions. The company offers voice and data, in-flight entertainment, and other services. In addition, it engages in the development, deployment, and operation of networks, towers, and data center infrastructure to support in-flight connectivity services, as well as in the provision of telecommunications connections to the internet. The company sells its products primarily to aircraft operators and original equipment manufacturers of business aviation aircraft through a distribution network of independent dealers. Gogo Inc. was founded in 1991 and is headquartered in Broomfield, Colorado. As of May 2024, Gogo Inc. claims that “Gogo is the only company in North America with a complete, certified airborne 5G network, meaning that all components within the network (including onboard equipment) are 5G native.”

About Mobivity

Mobivity Holdings Corp. engages in developing and operating proprietary platforms to conduct national and localized, and data-driven marketing campaigns in the United States. The company's Recurrency platform unlocks valuable point of sale systems (POS) and mobile data to help transform customer transactions into actionable and attributable marketing insights and power Connected Rewards interactions. It also operates as a Software-as-a-Service platform used by convenience and quick service restaurant brands to build and engage with their customers; and enables and powers incentivized programs in digital environments. In addition, its platform offers POS data capture, analytics, offers and promotions, predictive offers, personalized receipt promotions, customized mobile messaging, belly loyalty, and other services. It markets and sells its services through direct sales, resellers, and agents, as well as online through its website. The company is based in Chandler, Arizona.