Gogo (NASDAQ: GOGO) and Sprint Corporation (NYSE:S) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Risk and Volatility

Gogo has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500. Comparatively, Sprint Corporation has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Gogo $596.55 million 1.42 -$124.50 million ($1.99) -4.90
Sprint Corporation $33.35 billion 0.72 -$1.21 billion ($0.15) -40.20

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

Institutional & Insider Ownership

65.9% of Gogo shares are owned by institutional investors. Comparatively, 13.8% of Sprint Corporation shares are owned by institutional investors. 37.3% of Gogo shares are owned by company insiders. Comparatively, 0.2% of Sprint Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Gogo and Sprint Corporation’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%
Sprint Corporation -1.82% -3.19% -0.73%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Gogo and Sprint Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gogo 1 1 3 0 2.40
Sprint Corporation 6 11 1 0 1.72

Gogo presently has a consensus price target of $14.19, suggesting a potential upside of 45.36%. Sprint Corporation has a consensus price target of $10.09, suggesting a potential upside of 67.26%. Given Sprint Corporation’s higher possible upside, analysts clearly believe Sprint Corporation is more favorable than Gogo.

Summary

Gogo beats Sprint Corporation on 8 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.

Sprint Corporation Company Profile

Sprint Corporation (Sprint) is a holding company. The Company, along with its subsidiaries, is a communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of consumers, businesses, government subscribers and resellers. It operates through two segments: Wireless and Wireline. The Company offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale basis. The Wireline segment provides voice, data and Internet Protocol (IP) communication services to its Wireless segment. The Company offers wireless and wireline services to subscribers in approximately 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless on its wireless networks utilizing various technologies.

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