Critical Contrast: Cellcom Israel (OTCMKTS:CELJF) and Gogo (NASDAQ:GOGO)

Gogo (NASDAQ:GOGO) and Cellcom Israel (OTCMKTS:CELJF) are both small-cap communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares Gogo and Cellcom Israel’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%
Cellcom Israel	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Gogo and Cellcom Israel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gogo	0	3	1	0	2.25
Cellcom Israel	0	0	0	0	0.00

Gogo presently has a consensus target price of $8.50, suggesting a potential upside of 134.16%. Given Gogo’s stronger consensus rating and higher possible upside, equities analysts clearly believe Gogo is more favorable than Cellcom Israel.

Insider & Institutional Ownership

69.6% of Gogo shares are owned by institutional investors. 25.6% of Gogo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Gogo has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Cellcom Israel has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Valuation & Earnings

This table compares Gogo and Cellcom Israel”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gogo	$910.49 million	0.54	$12.92 million	$0.11	33.00
Cellcom Israel	$1.20 billion	1.43	$46.74 million	$0.42	24.96

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

Summary

Gogo beats Cellcom Israel on 9 of the 14 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 Cellcom Israel

Cellcom Israel Ltd. provides cellular communications services in Israel. It operates in two segments, Cellular and Fixed-line. The Cellular segment offers cellular communications, and cellular equipment and related services. The Fixed-line segment provides infrastructure and internet access, internet-based television, international telephony, landline telephony services, and transmission services for business customers and for telecommunication operators; and conferencing, cloud computing, and server hosting services, as well as IOT solutions. This segment also sells equipment, such as computers and communication equipment, including servers, routers, and switches, and others; and software and integration of information security products. The company was incorporated in 1994 and is headquartered in Netanya, Israel.