Contrasting Gogo (NASDAQ:GOGO) and Globalstar (NYSE:GSAT)

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

Analyst Ratings

This is a summary of current recommendations and price targets for Gogo and Globalstar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gogo	0	2	1	0	2.33
Globalstar	0	0	0	0	0.00

Gogo presently has a consensus price target of $12.17, indicating a potential upside of 47.65%. Given Gogo’s stronger consensus rating and higher possible upside, analysts plainly believe Gogo is more favorable than Globalstar.

Insider and Institutional Ownership

69.6% of Gogo shares are held by institutional investors. Comparatively, 18.9% of Globalstar shares are held by institutional investors. 26.0% of Gogo shares are held by insiders. Comparatively, 61.0% of Globalstar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Gogo and Globalstar”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gogo	$404.72 million	2.56	$145.68 million	$0.43	19.16
Globalstar	$241.58 million	17.25	-$24.72 million	($0.03)	-73.33

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 & Volatility

Gogo has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Globalstar has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gogo	13.94%	121.96%	7.91%
Globalstar	-14.91%	-9.40%	-3.91%

Summary

Gogo beats Globalstar on 12 of the 14 factors compared between the two stocks.

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.”

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.