Head-To-Head Survey: Intelsat (OTCMKTS:INTEQ) and Gogo (OTCMKTS:GOGO)

Gogo (NASDAQ:GOGO) and Intelsat (OTCMKTS:INTEQ) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gogo 1 1 1 0 2.00
Intelsat 0 0 0 0 N/A

Gogo currently has a consensus target price of $1.50, suggesting a potential downside of 45.85%. Given Gogo’s higher possible upside, research analysts plainly believe Gogo is more favorable than Intelsat.

Profitability

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

Net Margins Return on Equity Return on Assets
Gogo -26.08% N/A -9.56%
Intelsat -50.79% N/A -5.24%

Volatility and Risk

Gogo has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Intelsat has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Insider and Institutional Ownership

54.8% of Gogo shares are held by institutional investors. Comparatively, 79.7% of Intelsat shares are held by institutional investors. 40.0% of Gogo shares are held by company insiders. Comparatively, 4.0% of Intelsat shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gogo $835.73 million 0.28 -$146.00 million ($1.24) -2.23
Intelsat $2.06 billion 0.04 -$913.59 million ($3.79) -0.14

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

Summary

Gogo beats Intelsat on 8 of the 12 factors compared between the two stocks.

Gogo Company Profile

Gogo Inc., through its subsidiaries, provides inflight broadband connectivity and wireless entertainment services to the aviation industry in the United States and internationally. It 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 inflight connectivity and wireless digital entertainment solutions to commercial airline passengers flying routes that generally begin and end within North America. The CA-ROW segment provides inflight connectivity and wireless digital entertainment solutions to passengers flying on foreign-based commercial airlines and flights outside of North America for North American based commercial airlines. The BA segment offers equipment for inflight connectivity, including voice and data services to the business aviation market. Its services include AVANCE, an inflight broadband service that utilizes air-to-ground (ATG) network and ATG spectrum; Passenger Entertainment, an inflight entertainment service; and satellite-based voice and data services through strategic alliances with satellite companies. This segment serves aircraft manufacturers, owners, and operators, as well as government and military entities. The company was founded in 1991 and is headquartered in Chicago, Illinois.

Intelsat Company Profile

Intelsat S.A., together with its subsidiaries, provides satellite communications services worldwide. The company offers a range of communications services to media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications in the air and on the seas, multinational corporations, and Internet service providers; and commercial satellite communication services to the U.S. government and other military organizations and their contractors. It provides various on-network services, including transponder services; managed services that combine satellite capacity, teleport facilities, satellite communications hardware, and other ground facilities to provide managed and monitored broadband, trunking, video, and private network services to customers; and channel services primarily used for providing point-to-point bilateral services to telecommunications providers. The company also offers off-network services comprising transponder, mobile satellite, and other services. In addition, it offers satellite-related consulting and technical services that include the lifecycle of satellite operations and related infrastructure ranging from satellite and launch vehicle procurement through telemetry and commanding services, and related equipment sale services. Intelsat S.A. was founded in 1964 and is headquartered in Luxembourg City, Luxembourg. On May 14, 2020, Intelsat S.A., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Virginia.

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