Gogo (NASDAQ:GOGO) & Freenet (OTCMKTS:FRTAF) Head-To-Head Analysis

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

Risk and Volatility

Gogo has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Freenet has a beta of -0.01, suggesting that its share price is 101% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gogo	$903.28 million	0.41	$12.92 million	$0.01	273.00
Freenet	$2.76 billion	1.16	$306.95 million	$2.56	10.55

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gogo	2	2	1	0	1.80
Freenet	0	2	1	1	2.75

Gogo presently has a consensus price target of $8.50, indicating a potential upside of 211.36%. Given Gogo’s higher possible upside, equities research analysts clearly believe Gogo is more favorable than Freenet.

Profitability

This table compares Gogo and Freenet’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%
Freenet	10.04%	17.88%	7.85%

Insider & Institutional Ownership

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

Summary

Freenet beats Gogo on 8 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 Freenet

freenet AG provides telecommunications, broadcasting, and multimedia services for mobile communications/mobile internet, and digital lifestyle sectors in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments. The Mobile Communications segment engages in the marketing of mobile communications services, which include voice and data services from the mobile network operators; planning, set up, installation, and maintenance services for WiFi networks; and selling and distribution of mobile devices, as well as offers additional services for mobile data communications and digital lifestyle. This segment also provides network-independent services and tariffs; tariffs of the network operators on the basis of the network operator contracts; and freenet Internet, an app-based Internet product. The TV and Media segment is involved in the planning, project management, construction, operation, service, and marketing services for broadcast-related solutions for business clients in the broadcasting and media sectors; and the provision of services to end users in the field of DVB-T2 and IPTV. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT services, and other services; narrowband voice services; data services; and distribution services. The company provides its services under the klarmobil.de, freenetmobile.de, Dr.SIM, freenet MOBILE, FUNK, freenet FLEX, freenet, freenet TV, waipu.tv, freenet VIDEO, freenet.de, freenet BASICS, freenet ENERGY, freenet BUSINESS, CARMADA, MEDIA BROADCAST, vitrado.de, and The Cloud brands. It sells its products through electronics stores, as well as online sales. freenet AG was incorporated in 2005 and is headquartered in Büdelsdorf, Germany.