Gogo (NASDAQ:GOGO) versus Globalstar (NYSEARCA:GSAT) Head to Head Comparison

Globalstar (NYSEARCA:GSAT) and Gogo (NASDAQ:GOGO) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Globalstar and Gogo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globalstar	0	0	1	0	3.00
Gogo	0	2	1	0	2.33

Globalstar currently has a consensus price target of $5.00, indicating a potential upside of 133.64%. Gogo has a consensus price target of $12.17, indicating a potential upside of 64.41%. Given Globalstar’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Globalstar is more favorable than Gogo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Globalstar	-14.91%	-9.49%	-3.90%
Gogo	13.94%	121.96%	7.91%

Volatility and Risk

Globalstar has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Gogo has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Valuation and Earnings

This table compares Globalstar and Gogo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globalstar	$223.81 million	18.17	-$24.72 million	($0.03)	-71.33
Gogo	$404.72 million	2.30	$145.68 million	$0.43	17.21

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

Insider and Institutional Ownership

18.9% of Globalstar shares are held by institutional investors. Comparatively, 69.6% of Gogo shares are held by institutional investors. 61.0% of Globalstar shares are held by insiders. Comparatively, 26.0% of Gogo shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Gogo beats Globalstar on 9 of the 13 factors compared between the two stocks.

About Globalstar

Globalstar, Inc. provides mobile satellite services in the United States, Canada, Europe, Central and South America, and internationally. The company offers duplex two-way voice and data products, including mobile voice and data satellite communications services and equipment for remote business continuity, recreational usage, safety, emergency preparedness and response, and other applications. It also provides one-way or two-way communications and data transmissions using mobile devices, including the SPOT family of products, such as SPOT X, SPOT Gen4, and SPOT Trace that transmit messages and the location of the device; commercial Internet of Things transmission products to track cargo containers and rail cars, as well as to monitor utility meters, and oil and gas assets; small satellite transmitter modules comprising the STX-3, ST-150 and ST100, and chips that enable an integrator’s products to access its network; engineering and other communication services using MSS and terrestrial spectrum licenses; undertakes installation of gateways and antennas; and hardware and software products design and development services. The company distributes its products through retailers and sales force, as well as www.findmespot.com e-commerce website. Globalstar, Inc. serves recreation and personal, government, public safety and disaster relief, oil and gas, animal tracking, maritime and fishing, construction, utilities, and transportation, as well as natural resources, mining, leisure, emergency services, agriculture, and forestry markets. The company was founded in 1993 and is headquartered in Covington, Louisiana.

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.”