KDDI (OTCMKTS:KDDIY) & Gogo (NASDAQ:GOGO) Financial Contrast

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

Volatility & Risk

Gogo has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, KDDI has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500.

Earnings and Valuation

This table compares Gogo and KDDI”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gogo	$910.49 million	0.39	$12.92 million	$0.01	259.50
KDDI	$40.34 billion	1.90	$4.67 billion	$1.26	15.19

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

Institutional and Insider Ownership

69.6% of Gogo shares are owned by institutional investors. Comparatively, 0.1% of KDDI shares are owned by institutional investors. 25.6% of Gogo shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gogo	-0.09%	22.55%	1.97%
KDDI	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Gogo and KDDI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gogo	2	2	1	0	1.80
KDDI	0	1	0	1	3.00

Gogo currently has a consensus target price of $8.50, indicating a potential upside of 227.55%. Given Gogo’s higher probable upside, research analysts clearly believe Gogo is more favorable than KDDI.

Summary

Gogo beats KDDI on 8 of the 15 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 KDDI

KDDI Corporation provides telecommunications services in Japan and internationally. It operates in two segments, Personal Services and Business Services. The Personal Services segment offers telecommunication services and other services such as finance, energy, and LX through its multi-brands au, UQ mobile, and povo. The Business Services segment offers smartphones and other devices, network and cloud services, and data center services to corporate customers under the TELEHOUSE brand. The company was incorporated in 1984 and is headquartered in Tokyo, Japan.