Gogo (NASDAQ: GOGO) and China Mobile (NYSE:CHL) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Gogo and China Mobile, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gogo 1 1 3 0 2.40
China Mobile 1 0 2 0 2.33

Gogo presently has a consensus price target of $14.19, indicating a potential upside of 31.85%. Given Gogo’s stronger consensus rating and higher probable upside, analysts plainly believe Gogo is more favorable than China Mobile.

Dividends

China Mobile pays an annual dividend of $1.65 per share and has a dividend yield of 3.4%. Gogo does not pay a dividend. China Mobile pays out 40.2% of its earnings in the form of a dividend.

Profitability

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

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

Volatility & Risk

Gogo has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, China Mobile has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Institutional & Insider Ownership

69.9% of Gogo shares are owned by institutional investors. Comparatively, 2.0% of China Mobile shares are owned by institutional investors. 37.3% of Gogo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Gogo and China Mobile’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gogo $596.55 million 1.57 -$124.50 million ($1.99) -5.41
China Mobile $106.68 billion 1.89 $16.37 billion $4.10 12.00

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

China Mobile Limited is an investment holding company principally engaged in telecommunication and related businesses. Its main businesses include Mobile businesses, Wireline Broadband businesses and Internet of Things (IoT) businesses. Mobile businesses include two categories of services. Voice services include local calls, domestic and international long distance calls, roaming services and voice value-added services. Data services include short message services and multimedia message services, wireless data traffic services and application and information services, such as Mobile Music, Mobile Reading and Mobile Video, among others. Wireline Broadband businesses include the provision of wireline broadband and related services. The Company also provides customer services, including phone bill enquiry, among others. The Company mainly operates businesses in Mainland China.

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