Gogo (NASDAQ:GOGO – Get Free Report) and Tele2 (OTCMKTS:TLTZY – Get Free Report) are both communication services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Earnings and Valuation
This table compares Gogo and Tele2″s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gogo | $903.28 million | 0.38 | $12.92 million | $0.01 | 255.00 |
| Tele2 | $3.06 billion | 3.94 | $468.79 million | $0.78 | 11.21 |
Profitability
This table compares Gogo and Tele2’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gogo | -0.09% | 22.55% | 1.97% |
| Tele2 | 33.96% | 43.42% | 15.54% |
Institutional & Insider Ownership
69.6% of Gogo shares are owned by institutional investors. 25.6% of Gogo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Gogo has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Tele2 has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Gogo and Tele2, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gogo | 2 | 2 | 1 | 0 | 1.80 |
| Tele2 | 0 | 3 | 2 | 1 | 2.67 |
Gogo presently has a consensus price target of $8.50, indicating a potential upside of 233.33%. Given Gogo’s higher probable upside, equities research analysts clearly believe Gogo is more favorable than Tele2.
Summary
Tele2 beats Gogo on 10 of the 15 factors compared between the two stocks.
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.”
About Tele2
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Tele2 AB (publ) provides fixed and mobile connectivity, handset related data services, and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers mobile telephony and data, fixed broadband, fixed telephony, switch and contact center, cloud services, IT services, network services, workplace, video and collaboration, united communications, and security services. The company also provides data network services, including dark fiber, dedicated wavelength, ethernet and IP VPN, and internet services; and unified communications comprising service provider, mobile virtual network operator, and carrier SIP-interconnect services. In addition, it offers single and dual IMSI solutions for consumer and IoT applications; on-demand roaming services, such as subscription management, data plan management, real time charging, eSIM delivery, SIM management, and set up services; routing and termination solutions for international voice traffic; application-2-person messaging services; and value-added services comprising shortcodes and long numbers for businesses to have 2-way communication with their customers. The company was incorporated in 1990 and is headquartered in Kista, Sweden.
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