Contrasting Iridium World Communications (OTCMKTS:IRIDQ) & Gogo (NASDAQ:GOGO)

Gogo (NASDAQ:GOGO) and Iridium World Communications (OTCMKTS:IRIDQ) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

69.6% of Gogo shares are held by institutional investors. 25.6% of Gogo shares are held by insiders. Comparatively, 4.1% of Iridium World Communications shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Gogo and Iridium World Communications, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gogo	0	3	1	0	2.25
Iridium World Communications	0	0	0	0	0.00

Gogo currently has a consensus target price of $8.50, indicating a potential upside of 145.31%. Given Gogo’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gogo is more favorable than Iridium World Communications.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gogo	-0.09%	22.55%	1.97%
Iridium World Communications	N/A	N/A	N/A

Valuation & Earnings

This table compares Gogo and Iridium World Communications”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gogo	$910.49 million	0.51	$12.92 million	$0.01	346.50
Iridium World Communications	N/A	N/A	N/A	N/A	N/A

Gogo has higher revenue and earnings than Iridium World Communications.

Risk and Volatility

Gogo has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Iridium World Communications has a beta of 0.07, meaning that its share price is 93% less volatile than the S&P 500.

Summary

Gogo beats Iridium World Communications on 9 of the 10 factors compared between the two stocks.

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.”

About Iridium World Communications

In August 1999, Iridium World Communications Ltd. filed a voluntary petition under Chapter 11 of the United States Bankruptcy Court, and operated as a debtor-in-possession. Iridium World Communications, Ltd. was engaged in the ownership and participation in the management of Iridium LLC, its parent company, which owned Iridium Operating LLC (Iridium), as of March 31, 1999. Iridium operated as a global wireless telecommunications company. It enabled its customers to make and receive phone calls, and receive pages virtually anywhere in the world. The company was founded in 1991 and is based in Hamilton, Bermuda.