Cellcom Israel (NYSE: CEL) and Gogo (NASDAQ:GOGO) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Cellcom Israel 3.12% 8.94% 1.90%
Gogo -22.58% N/A -11.62%

Risk and Volatility

Cellcom Israel has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, Gogo has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cellcom Israel $1.11 billion 0.85 $210.25 million $0.32 29.38
Gogo $645.47 million 1.60 $74.39 million ($1.84) -6.49

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

Insider & Institutional Ownership

5.6% of Cellcom Israel shares are owned by institutional investors. Comparatively, 66.5% of Gogo shares are owned by institutional investors. 37.3% of Gogo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Cellcom Israel and Gogo, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cellcom Israel 1 1 0 0 1.50
Gogo 1 1 3 0 2.40

Gogo has a consensus target price of $13.69, indicating a potential upside of 14.64%. Given Gogo’s stronger consensus rating and higher probable upside, analysts plainly believe Gogo is more favorable than Cellcom Israel.

Summary

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

Cellcom Israel Company Profile

Cellcom Israel Ltd. is engaged in the provision of cellular telephone services. The Company offers fixed-line services. The Company operates in two segments: Cellular and Fixed-line. The cellular segment includes the cellular communications services, end user cellular equipment and supplemental services. The fixed-line segment includes landline and long distance telephony services, Internet infrastructure and connectivity services, television services, end user fixed-line equipment and supplemental services. The Company provides a range of cellular services through its second generation (2G), third generation (3G) and fourth generation (4G) network. The Company’s services include basic cellular telephony services, text and multimedia messaging, advanced cellular content and data services, and other value-added services. It also offers international roaming services, a range of handsets from various manufacturers, and repair services on most handsets it offers.

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.

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