Gogo (NASDAQ: GOGO) and America Movil SAB de CV (NYSE:AMX) are both telecommunications services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Institutional & Insider Ownership

69.8% of Gogo shares are owned by institutional investors. Comparatively, 7.5% of America Movil SAB de CV shares are owned by institutional investors. 37.3% of Gogo shares are owned by insiders. Comparatively, 1.0% of America Movil SAB de CV shares are owned by 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 America Movil SAB de CV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gogo -23.51% N/A -12.24%
America Movil SAB de CV 4.50% 18.73% 3.39%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Gogo and America Movil SAB de CV, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gogo 1 1 3 0 2.40
America Movil SAB de CV 2 0 5 0 2.43

Gogo currently has a consensus price target of $14.19, suggesting a potential upside of 29.21%. America Movil SAB de CV has a consensus price target of $17.50, suggesting a potential downside of 0.79%. Given Gogo’s higher possible upside, equities research analysts plainly believe Gogo is more favorable than America Movil SAB de CV.

Risk and Volatility

Gogo has a beta of 1.69, indicating that its share price is 69% more volatile than the S&P 500. Comparatively, America Movil SAB de CV has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Dividends

America Movil SAB de CV pays an annual dividend of $0.17 per share and has a dividend yield of 1.0%. Gogo does not pay a dividend. America Movil SAB de CV pays out 30.9% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Gogo and America Movil SAB de CV’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gogo $596.55 million 1.60 -$124.50 million ($1.99) -5.52
America Movil SAB de CV $52.35 billion 1.11 $417.00 million $0.55 32.07

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

Summary

America Movil SAB de CV beats Gogo on 10 of the 16 factors compared between the two stocks.

About Gogo

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 America Movil SAB de CV

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

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