Critical Survey: Gogo (NASDAQ:GOGO) and TeliaSonera (OTCMKTS:TLSNY)

TeliaSonera (OTCMKTS:TLSNY) and Gogo (NASDAQ:GOGO) are both communication services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for TeliaSonera and Gogo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TeliaSonera	1	2	0	1	2.25
Gogo	2	2	1	0	1.80

Gogo has a consensus target price of $8.50, suggesting a potential upside of 233.33%. Given Gogo’s higher probable upside, analysts plainly believe Gogo is more favorable than TeliaSonera.

Institutional and Insider Ownership

69.6% of Gogo shares are owned by institutional investors. 25.6% of Gogo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TeliaSonera	6.26%	9.20%	2.66%
Gogo	-0.09%	22.55%	1.97%

Risk and Volatility

TeliaSonera has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Gogo has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Earnings & Valuation

This table compares TeliaSonera and Gogo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TeliaSonera	$8.28 billion	2.15	$360.26 million	$0.27	33.56
Gogo	$903.28 million	0.38	$12.92 million	$0.01	255.00

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

Summary

TeliaSonera beats Gogo on 8 of the 15 factors compared between the two stocks.

About TeliaSonera

Telia Company AB (publ) provides communication services to businesses, individuals, families, and communities in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Latvia. It offers mobile, broadband, television, and fixed-line services; and networking, cloud and security, mobility, enterprise mobile network, contact center, managed mobility services, collaboration solutions, enterprise telephony, Internet of Things (IoT), carrier ethernet, dedicated internet access, wavelengths, IP Transit, dark fiber, and colocation solutions. The company also provides IoT connectivity, building monitoring, smart public transport, and smart utilities, as well as transport and logistics solutions comprising connected vehicle, asset tracking, and fleet management services. It markets its products and services under the Telia, Telia Cygate, TV4, C More, Halebop, Fello, MTV, Phonero, Onecall, MyCall, CallMe, MIT Tele, Ezys, Diil, Super, and Imt brand names for transport and logistics, public transport, manufacturing, retail, utilities, buildings and real estate, and public sector industries. The company was formerly known as TeliaSonera AB (publ) and changed its name to Telia Company AB (publ) in April 2016. Telia Company AB (publ) was founded in 1853 and is based in Solna, Sweden.

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.”