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

Profitability

This table compares Gogo and T-Mobile Us’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gogo -23.51% N/A -12.24%
T-Mobile Us N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Gogo and T-Mobile Us, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gogo 1 1 3 0 2.40
T-Mobile Us 0 3 4 0 2.57

Gogo currently has a consensus target price of $14.19, indicating a potential upside of 55.74%. T-Mobile Us has a consensus target price of $71.29, indicating a potential upside of 502.08%. Given T-Mobile Us’ stronger consensus rating and higher probable upside, analysts plainly believe T-Mobile Us is more favorable than Gogo.

Earnings & Valuation

This table compares Gogo and T-Mobile Us’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Gogo $596.55 million 1.33 -$124.50 million ($1.99) -4.58
T-Mobile Us N/A N/A N/A $0.24 49.33

T-Mobile Us has higher revenue, but lower earnings than Gogo. Gogo is trading at a lower price-to-earnings ratio than T-Mobile Us, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

66.6% of Gogo shares are owned by institutional investors. 37.3% of Gogo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

T-Mobile Us beats Gogo on 6 of the 9 factors compared between the two stocks.

About Gogo

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 T-Mobile Us

MetroPCS Communications, Inc. (MetroPCS Communications) is a facilities-based wireless broadband mobile communications provider in the United States, including the Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco, and Tampa/Sarasota metropolitan areas. It offers wireless broadband mobile services under the MetroPCS brand in selected metropolitan areas in the United States. It provides a variety of wireless broadband mobile communications services to its customers on a no long-term contract, paid-in-advance basis. As of December 31, 2011, it had over 9.3 million customers. All of its services are provided through wholly owned subsidiaries of MetroPCS Wireless, Inc., an indirect wholly owned subsidiary of MetroPCS Communications. In January 2011, it introduced long term evolution (4G LTE) service plans.

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