Reviewing Gogo (GOGO) and China Mobile (Hong Kong) (CHL)
Gogo (NASDAQ: GOGO) and China Mobile (Hong Kong) (NYSE:CHL) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.
Earnings & Valuation
This table compares Gogo and China Mobile (Hong Kong)’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gogo||$596.55 million||1.59||-$124.50 million||($1.99)||-5.51|
|China Mobile (Hong Kong)||$106.68 billion||1.89||$16.37 billion||N/A||N/A|
This table compares Gogo and China Mobile (Hong Kong)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Mobile (Hong Kong)||N/A||N/A||N/A|
Risk & Volatility
Gogo has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, China Mobile (Hong Kong) has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.
China Mobile (Hong Kong) pays an annual dividend of $1.65 per share and has a dividend yield of 3.4%. Gogo does not pay a dividend.
This is a summary of recent ratings and target prices for Gogo and China Mobile (Hong Kong), as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Mobile (Hong Kong)||1||0||2||0||2.33|
Gogo presently has a consensus target price of $14.19, suggesting a potential upside of 29.45%. Given Gogo’s stronger consensus rating and higher possible upside, equities analysts clearly believe Gogo is more favorable than China Mobile (Hong Kong).
Institutional and Insider Ownership
69.9% of Gogo shares are held by institutional investors. Comparatively, 2.0% of China Mobile (Hong Kong) shares are held by institutional investors. 37.3% of Gogo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
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.
About China Mobile (Hong Kong)
China Mobile Limited is an investment holding company principally engaged in telecommunication and related businesses. Its main businesses include Mobile businesses, Wireline Broadband businesses and Internet of Things (IoT) businesses. Mobile businesses include two categories of services. Voice services include local calls, domestic and international long distance calls, roaming services and voice value-added services. Data services include short message services and multimedia message services, wireless data traffic services and application and information services, such as Mobile Music, Mobile Reading and Mobile Video, among others. Wireline Broadband businesses include the provision of wireline broadband and related services. The Company also provides customer services, including phone bill enquiry, among others. The Company mainly operates businesses in Mainland China.
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