ORBCOMM (ORBC) vs. Gogo (GOGO) Financial Survey
ORBCOMM (NASDAQ: ORBC) and Gogo (NASDAQ:GOGO) 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 profitabiliy, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Institutional & Insider Ownership
80.8% of ORBCOMM shares are held by institutional investors. Comparatively, 64.6% of Gogo shares are held by institutional investors. 9.5% of ORBCOMM shares are held by company insiders. Comparatively, 37.7% of Gogo shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares ORBCOMM and Gogo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for ORBCOMM and Gogo, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ORBCOMM currently has a consensus price target of $12.88, suggesting a potential upside of 10.14%. Gogo has a consensus price target of $14.83, suggesting a potential upside of 22.39%. Given Gogo’s higher probable upside, analysts clearly believe Gogo is more favorable than ORBCOMM.
Earnings and Valuation
This table compares ORBCOMM and Gogo’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ORBCOMM||$195.11 million||4.29||$37.30 million||($0.36)||-32.47|
|Gogo||$620.21 million||1.69||$78.98 million||($1.79)||-6.77|
Gogo has higher revenue and earnings than ORBCOMM. ORBCOMM 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
ORBCOMM has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Gogo has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.
Gogo beats ORBCOMM on 7 of the 13 factors compared between the two stocks.
ORBCOMM Inc. is a provider of Internet of Things (IoT) solutions, including network connectivity, devices, device management and Web reporting applications. The Company’s IoT products and services are designed to track, monitor and manage security for a range of assets, such as trailers, trucks, rail cars, sea containers, generators, fluid tanks, marine vessels, diesel or electric powered generators (gensets), oil and gas wells, pipeline monitoring equipment, irrigation control systems, and utility meters, in industries for transportation and supply chain, heavy equipment, fixed asset monitoring, maritime and government. It also provides Automatic Identification System (AIS) data services to assist in vessel navigation and to manage maritime safety for government and commercial customers across the world. It provides its services using various network platforms, including its own constellation of low-Earth orbit (LEO) satellites.
Gogo Inc. is a holding company. The Company is a provider of in-flight broadband connectivity and connectivity-enabled services to commercial and business aviation. The Company 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 air-to-ground (ATG) and satellite connectivity and entertainment services to commercial aircraft flying routes generally within North America. The CA-ROW segment offers satellite connectivity and entertainment services, using 2Ku and Ku solutions, to commercial aircraft flying routes outside of North America. The Company’s BA segment offers a suite of integrated equipment, network and Internet connectivity products and services to the business aviation market. As of December 31, 2016, it provided services on 2,943 commercial aircraft. The Company offers a package of airborne equipment for its ATG-4/ATG and satellite services.
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