Globalstar (NYSE:GSAT – Get Free Report) and Gogo (NASDAQ:GOGO – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
18.9% of Globalstar shares are held by institutional investors. Comparatively, 69.6% of Gogo shares are held by institutional investors. 61.0% of Globalstar shares are held by company insiders. Comparatively, 26.0% of Gogo shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Globalstar and Gogo’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Globalstar | -14.91% | -9.40% | -3.91% |
Gogo | 13.94% | 121.96% | 7.91% |
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Globalstar | 0 | 0 | 0 | 0 | 0.00 |
Gogo | 0 | 2 | 1 | 0 | 2.33 |
Gogo has a consensus price target of $12.17, suggesting a potential upside of 47.65%. Given Gogo’s stronger consensus rating and higher probable upside, analysts clearly believe Gogo is more favorable than Globalstar.
Earnings & Valuation
This table compares Globalstar and Gogo”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Globalstar | $241.58 million | 17.25 | -$24.72 million | ($0.03) | -73.33 |
Gogo | $397.58 million | 2.61 | $145.68 million | $0.43 | 19.16 |
Gogo has higher revenue and earnings than Globalstar. Globalstar is trading at a lower price-to-earnings ratio than Gogo, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Globalstar has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Gogo has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
Summary
Gogo beats Globalstar on 12 of the 14 factors compared between the two stocks.
About Globalstar
GLOBALSTAR INC offers satellite voice and data services to commercial and recreational users in more than 120 countries around the world. Globalstar’s products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications.
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.”
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