Gogo (NASDAQ:GOGO – Get Free Report) and SurgePays (NASDAQ:SURG – Get Free Report) are both small-cap communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Gogo and SurgePays, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gogo | 1 | 3 | 1 | 0 | 2.00 |
| SurgePays | 1 | 1 | 1 | 0 | 2.00 |
Gogo presently has a consensus price target of $8.50, suggesting a potential upside of 254.17%. SurgePays has a consensus price target of $3.50, suggesting a potential upside of 2,193.58%. Given SurgePays’ higher possible upside, analysts plainly believe SurgePays is more favorable than Gogo.
Institutional and Insider Ownership
69.6% of Gogo shares are held by institutional investors. Comparatively, 6.9% of SurgePays shares are held by institutional investors. 25.6% of Gogo shares are held by company insiders. Comparatively, 29.1% of SurgePays shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Gogo and SurgePays’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gogo | -0.09% | 22.55% | 1.97% |
| SurgePays | -47.89% | N/A | -274.37% |
Valuation and Earnings
This table compares Gogo and SurgePays”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gogo | $910.49 million | 0.36 | $12.92 million | $0.01 | 240.00 |
| SurgePays | $56.96 million | 0.14 | -$36.07 million | ($1.53) | -0.10 |
Gogo has higher revenue and earnings than SurgePays. SurgePays is trading at a lower price-to-earnings ratio than Gogo, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Gogo has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, SurgePays has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.
Summary
Gogo beats SurgePays on 9 of the 11 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 SurgePays
SurgePays, Inc., together with its subsidiaries, operates as a financial technology and telecom company in the United States. It operates through three segments: Mobile Virtual Network Operators, Comprehensive Platform Services, and Lead Generation. The company offers subsidized and non-subsidized mobile virtual network operators for internet connectivity through mobile broadband services to consumers; ACH banking relationships and fintech transactions platform to convenience stores; wireless top-up transactions and wireless product aggregation; and lead generation and case management solutions primarily to law firms in the mass tort industry, as well as call center activities. SurgePays, Inc. is headquartered in Bartlett, Tennessee.
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