KDDI (OTCMKTS:KDDIY – Get Free Report) and Gogo (NASDAQ:GOGO – Get Free Report) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Institutional & Insider Ownership
0.1% of KDDI shares are held by institutional investors. Comparatively, 69.6% of Gogo shares are held by institutional investors. 25.6% of Gogo shares are held 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.
Analyst Ratings
This is a summary of recent recommendations and price targets for KDDI and Gogo, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KDDI | 0 | 1 | 0 | 1 | 3.00 |
| Gogo | 2 | 2 | 1 | 0 | 1.80 |
Volatility and Risk
KDDI has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500. Comparatively, Gogo has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.
Valuation and Earnings
This table compares KDDI and Gogo”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KDDI | $40.34 billion | 1.92 | $4.67 billion | $1.26 | 15.36 |
| Gogo | $910.49 million | 0.39 | $12.92 million | $0.01 | 260.50 |
KDDI has higher revenue and earnings than Gogo. KDDI 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 KDDI and Gogo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KDDI | N/A | N/A | N/A |
| Gogo | -0.09% | 22.55% | 1.97% |
Summary
Gogo beats KDDI on 8 of the 15 factors compared between the two stocks.
About KDDI
KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers telecommunication services and other services such as finance, energy, and LX through its multi-brands au, UQ mobile, and povo. The Business Services segment offers smartphones and other devices, network and cloud services, and data center services to corporate customers under the TELEHOUSE brand. The company was incorporated in 1984 and is headquartered in Tokyo, Japan.
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.”
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