Sprint Corporation (NYSE: S) and Gogo (NASDAQ:GOGO) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sprint Corporation and Gogo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sprint Corporation 5 13 2 0 1.85
Gogo 1 1 3 0 2.40

Sprint Corporation presently has a consensus price target of $10.45, suggesting a potential upside of 48.18%. Gogo has a consensus price target of $14.19, suggesting a potential upside of 31.00%. Given Sprint Corporation’s higher possible upside, analysts plainly believe Sprint Corporation is more favorable than Gogo.

Insider and Institutional Ownership

14.0% of Sprint Corporation shares are held by institutional investors. Comparatively, 66.5% of Gogo shares are held by institutional investors. 0.2% of Sprint Corporation shares are held by insiders. Comparatively, 37.3% of Gogo shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Sprint Corporation and Gogo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sprint Corporation -2.08% -3.66% -0.84%
Gogo -22.58% N/A -11.62%

Risk & Volatility

Sprint Corporation has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Gogo has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sprint Corporation and Gogo’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sprint Corporation $33.49 billion 0.84 $10.80 billion ($0.18) -39.16
Gogo $645.47 million 1.45 $74.39 million ($1.84) -5.89

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

Summary

Gogo beats Sprint Corporation on 7 of the 13 factors compared between the two stocks.

Sprint Corporation Company Profile

Sprint Corporation (Sprint) is a holding company. The Company, along with its subsidiaries, is a communications company offering a range of wireless and wireline communications products and services that are designed to meet the needs of consumers, businesses, government subscribers and resellers. It operates through two segments: Wireless and Wireline. The Company offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale basis. The Wireline segment provides voice, data and Internet Protocol (IP) communication services to its Wireless segment. The Company offers wireless and wireline services to subscribers in approximately 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless on its wireless networks utilizing various technologies.

Gogo Company Profile

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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