Reviewing Gogo (NASDAQ:GOGO) & Cellcom Israel (OTCMKTS:CELJF)

Cellcom Israel (OTCMKTS:CELJFGet Free Report) and Gogo (NASDAQ:GOGOGet Free Report) are both small-cap communication services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Insider & Institutional Ownership

69.6% of Gogo shares are held by institutional investors. 25.6% of Gogo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Cellcom Israel and Gogo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cellcom Israel 0 0 0 0 0.00
Gogo 0 3 1 0 2.25

Gogo has a consensus target price of $8.50, suggesting a potential upside of 134.16%. Given Gogo’s stronger consensus rating and higher probable upside, analysts clearly believe Gogo is more favorable than Cellcom Israel.

Earnings and Valuation

This table compares Cellcom Israel and Gogo”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cellcom Israel $1.20 billion 1.43 $46.74 million $0.42 24.96
Gogo $910.49 million 0.54 $12.92 million $0.11 33.00

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

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 N/A N/A N/A
Gogo -0.09% 22.55% 1.97%

Volatility & Risk

Cellcom Israel has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Gogo has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Summary

Gogo beats Cellcom Israel on 9 of the 14 factors compared between the two stocks.

About Cellcom Israel

(Get Free Report)

Cellcom Israel Ltd. provides cellular communications services in Israel. It operates in two segments, Cellular and Fixed-line. The Cellular segment offers cellular communications, and cellular equipment and related services. The Fixed-line segment provides infrastructure and internet access, internet-based television, international telephony, landline telephony services, and transmission services for business customers and for telecommunication operators; and conferencing, cloud computing, and server hosting services, as well as IOT solutions. This segment also sells equipment, such as computers and communication equipment, including servers, routers, and switches, and others; and software and integration of information security products. The company was incorporated in 1994 and is headquartered in Netanya, Israel.

About Gogo

(Get Free Report)

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.”

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