Gogo (GOGO) and Rogers Communication (RCI) Critical Analysis
Gogo (NASDAQ: GOGO) and Rogers Communication (NYSE:RCI) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitabiliy and dividends.
Earnings & Valuation
This table compares Gogo and Rogers Communication’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gogo||$620.21 million||1.79||$78.98 million||($1.79)||-7.16|
|Rogers Communication||$11.06 billion||1.87||$4.08 billion||$1.48||34.80|
Rogers Communication has higher revenue and earnings than Gogo. Gogo is trading at a lower price-to-earnings ratio than Rogers Communication, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Gogo has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Rogers Communication has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
Rogers Communication pays an annual dividend of $1.42 per share and has a dividend yield of 2.8%. Gogo does not pay a dividend. Rogers Communication pays out 95.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Gogo and Rogers Communication’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for Gogo and Rogers Communication, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gogo currently has a consensus target price of $16.00, indicating a potential upside of 24.80%. Rogers Communication has a consensus target price of $55.00, indicating a potential upside of 6.80%. Given Gogo’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Gogo is more favorable than Rogers Communication.
Institutional & Insider Ownership
63.7% of Gogo shares are held by institutional investors. Comparatively, 47.7% of Rogers Communication shares are held by institutional investors. 37.7% of Gogo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Rogers Communication beats Gogo on 8 of the 15 factors compared between the two stocks.
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.
About Rogers Communication
Rogers Communications Inc. is a communications and media company. The Company provides wireless communications services, and cable television, Internet, information technology (IT) and telephony services to consumers and businesses. Its segments include Wireless, Cable, Business Solutions and Media. The Wireless segment is engaged in wireless telecommunications operations for Canadian consumers and businesses. The Cable segment include cable telecommunications operations, including Internet, television and telephony (phone) services for Canadian consumers and businesses. The Business Solutions segment is engaged in network connectivity through its fiber network and data center assets to support a range of voice, data, networking, hosting, and cloud-based services for the enterprise, public sector and carrier wholesale markets. The Media segment has a portfolio of media properties, including sports media and entertainment, multi-platform shopping, digital media and publishing.
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