Orange (OTCMKTS:ORANY) versus Gogo (NASDAQ:GOGO) Financial Analysis

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

Valuation and Earnings

This table compares Orange and Gogo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orange	$45.69 billion	1.11	$608.69 million	N/A	N/A
Gogo	$910.49 million	0.62	$12.92 million	$0.11	38.00

Orange has higher revenue and earnings than Gogo.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orange	0	3	3	1	2.71
Gogo	1	2	0	0	1.67

Gogo has a consensus target price of $9.50, suggesting a potential upside of 127.27%. Given Gogo’s higher possible upside, analysts plainly believe Gogo is more favorable than Orange.

Volatility and Risk

Orange has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, Gogo has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orange	N/A	N/A	N/A
Gogo	1.54%	37.53%	3.13%

Insider & Institutional Ownership

12.2% of Orange shares are held by institutional investors. Comparatively, 69.6% of Gogo shares are held by institutional investors. 25.6% of Gogo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Gogo beats Orange on 7 of the 13 factors compared between the two stocks.

About Orange

Orange S.A. provides various fixed telephony and mobile telecommunications, data transmission, and other value-added services to customers, businesses, and other telecommunications operators in France and internationally. It operates through France; Spain and Other European Countries; The Africa and Middle East; Enterprise; International Carriers & Shared Services; and Mobile Financial Services segments. The company offers mobile services, such as voice, SMS, and data; fixed broadband and narrowband services, as well as fixed network business solutions, including voice and data; and convergence packages. It also sells mobile handsets, mobile terminals, broadband equipment, connected devices, and accessories. In addition, the company provides IT and integration services comprising unified communication and collaboration services, such as LAN and telephony, consultancy, integration, and project management; hosting and infrastructure services, including cloud computing; customer relations management and other applications services; security services; and video conferencing, as well as sells related equipment. Further, it offers national and international roaming services; online advertising services; and mobile virtual network operators, network sharing, and mobile financial services, as well as sells equipment to external distributors and brokers. Orange S.A. markets its products and services under the Orange brand. The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. Orange S.A. was founded in 1990 and is headquartered in Issy-les-Moulineaux, France.

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.”