Head-To-Head Contrast: Gogo (NASDAQ:GOGO) versus KVH Industries (NASDAQ:KVHI)

KVH Industries (NASDAQ:KVHI) and Gogo (NASDAQ:GOGO) are both small-cap communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KVH Industries	-4.68%	-0.76%	-0.65%
Gogo	-0.09%	22.55%	1.97%

Earnings & Valuation

This table compares KVH Industries and Gogo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KVH Industries	$111.01 million	1.14	-$7.38 million	($0.30)	-23.20
Gogo	$903.28 million	0.32	$12.92 million	$0.01	214.00

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

Analyst Recommendations

This is a summary of current ratings and price targets for KVH Industries and Gogo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KVH Industries	1	0	0	0	1.00
Gogo	2	2	1	0	1.80

Gogo has a consensus price target of $8.50, indicating a potential upside of 297.20%. Given Gogo’s stronger consensus rating and higher possible upside, analysts clearly believe Gogo is more favorable than KVH Industries.

Insider and Institutional Ownership

73.7% of KVH Industries shares are owned by institutional investors. Comparatively, 69.6% of Gogo shares are owned by institutional investors. 21.4% of KVH Industries shares are owned by insiders. Comparatively, 25.6% of Gogo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

KVH Industries has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Gogo has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Summary

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

About KVH Industries

KVH Industries, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of mobile connectivity solutions for the marine and land mobile markets in the United States and internationally. The company offers Internet and VoIP airtime services; AgilePlans, a Connectivity as a Service solution; KVH Link, a crew wellbeing content subscription service with delivery by IP-Mobilecast; and OpenNet, a KVH VSAT data delivering service for non-KVH Ku-band VSAT terminals. It also provides TracNet, an integrated hybrid two-way communication terminal with VSAT, 5G/LTE, and shore-based Wi-Fi; TracPhone, a two-way VSAT-only satellite communications system; CommBox, ship-to-shore network management software for maritime communications; CommBox Edge, an advanced maritime network optimization and management solution; Starlink, a companion terminal for TracNet and TracPhone systems; KVH ONE, a global hybrid communication network supporting Internet, VoIP, content delivery, and other; and TracVision, a satellite television antenna system for vessels, recreational vehicles, buses, conversion vans, and automobiles. In addition, the company offers KVH Elite, a streaming service for leisure yachts; KVH OneCare, a services and support for TracNet and TracPhone systems; MOVIElink, a movie distribution solution; MUSIClink, a music and karaoke delivery solution; NEWSlink, a maritime news delivery solution; SPORTSlink, a sporting content delivery solution; TVlink, a television programming delivery solution; and news from home, a digital newspaper service. It sells its mobile communications products through a network of independent retailers, chain stores, distributors, and service providers, as well as to manufacturers of vessels, maritime equipment, and vehicles. The company was founded in 1982 and is headquartered in Middletown, Rhode Island.

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.”