Head-To-Head Analysis: Platinum Communications (PCS) and Gogo (GOGO)

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

Valuation & Earnings

This table compares Gogo and Platinum Communications’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Gogo $596.55 million 1.41 -$124.50 million ($1.99) -4.88
Platinum Communications N/A N/A N/A C$0.24 49.33

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

Institutional & Insider Ownership

66.6% of Gogo 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 company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Gogo and Platinum Communications, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gogo 1 1 3 0 2.40
Platinum Communications 0 2 5 0 2.71

Gogo currently has a consensus price target of $14.19, suggesting a potential upside of 45.96%. Platinum Communications has a consensus price target of C$70.86, suggesting a potential upside of 498.46%. Given Platinum Communications’ stronger consensus rating and higher probable upside, analysts clearly believe Platinum Communications is more favorable than Gogo.

Profitability

This table compares Gogo and Platinum Communications’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gogo -23.51% N/A -12.24%
Platinum Communications N/A N/A N/A

Summary

Platinum Communications beats Gogo on 6 of the 9 factors compared between the two stocks.

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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