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Analyzing Gogo (NASDAQ:GOGO) and Spire Global (NYSE:SPIR)

Defense World ·  Sep 24, 2022 02:51

Spire Global (NYSE:SPIR – Get Rating) and Gogo (NASDAQ:GOGO – Get Rating) are both small-cap aerospace companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations for Spire Global and Gogo, as reported by MarketBeat.com.

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Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spire Global 1 1 1 0 2.00
Gogo 1 1 2 0 2.25

Spire Global presently has a consensus target price of 5.35, indicating a potential upside of 400.00%. Gogo has a consensus target price of $20.40, indicating a potential upside of 71.00%. Given Spire Global's higher possible upside, research analysts clearly believe Spire Global is more favorable than Gogo.

Risk and Volatility

Spire Global has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Gogo has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Profitability

This table compares Spire Global and Gogo's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spire Global -50.58% 4.90% 2.54%
Gogo 74.01% -26.15% 13.67%

Insider and Institutional Ownership

25.3% of Spire Global shares are held by institutional investors. Comparatively, 88.1% of Gogo shares are held by institutional investors. 5.7% of Spire Global shares are held by insiders. Comparatively, 28.2% of Gogo shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Spire Global and Gogo's revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spire Global $43.38 million 3.45 -$19.31 million -0.53 -2.02
Gogo $335.72 million 4.57 $152.74 million $2.03 5.88

Gogo has higher revenue and earnings than Spire Global. Spire Global 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 Spire Global on 12 of the 14 factors compared between the two stocks.

About Spire Global

(Get Rating)

Spire Global, Inc. develops a hardware and intelligent analytics platform that tracks the oceans, skies, and weather. It serves maritime, weather, aviation, space services, earth intelligence, and federal industries. Spire Global, Inc. has a strategic partnership with TAC Index Limited. Spire Global, Inc. was formerly known as Nanosatisfi, Inc. and changed its name to Spire Global, Inc. in July 2014. The company was incorporated in 2012 and is based in San Francisco, California with additional offices in Boulder, Colorado; Washington, D.C.; Glasgow, United Kingdom; Luxembourg; and Singapore.

About Gogo

(Get Rating)

Gogo Inc., through its subsidiaries, provides broadband connectivity services to the aviation industry in the United States and internationally. It operates through Commercial Aviation North America (CA-NA), Commercial Aviation Rest of World (CA-ROW), and Business Aviation (BA) segments. The company design, build and operate air-to-ground networks, engineer and maintain in-flight systems of proprietary hardware and software, and deliver customizable connectivity and wireless entertainment services. It also offers suite of integrated equipment, network, and internet connectivity products and services, as well as includes suite of smart cabin systems for integrated connectivity, in-flight entertainment, and voice solutions. In addition, the company portfolio comprises of in-flight network, in-flight systems, in-flight services, aviation partner support, and production operations functions. Further, the company offers satellite-based voice and data services. Gogo Inc. was founded in 1991 and is headquartered in Broomfield, Colorado.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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