VEON (NASDAQ:VEON) versus Gogo (NASDAQ:GOGO) Critical Review

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

Insider and Institutional Ownership

69.6% of Gogo shares are owned by institutional investors. Comparatively, 21.3% of VEON 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, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Gogo has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, VEON has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gogo	2	2	1	0	1.80
VEON	0	2	3	0	2.60

Gogo presently has a consensus target price of $8.50, indicating a potential upside of 236.63%. VEON has a consensus target price of $72.00, indicating a potential upside of 3.24%. Given Gogo’s higher probable upside, analysts plainly believe Gogo is more favorable than VEON.

Profitability

This table compares Gogo and VEON’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%
VEON	1.24%	14.93%	2.78%

Earnings & Valuation

This table compares Gogo and VEON”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gogo	$910.49 million	0.38	$12.92 million	$0.01	252.50
VEON	$4.40 billion	1.17	$532.00 million	$0.85	82.05

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

Summary

VEON beats Gogo 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 VEON

VEON Ltd., a digital operator, provides connectivity and internet services in Pakistan, Ukraine, Kazakhstan, Bangladesh, Uzbekistan, and Kyrgyzstan. It offers mobile telecommunications services, including value added and call completion, national and international roaming, wireless Internet access, mobile financial, and mobile bundle services; data connectivity, cross border transit, voice, Internet, and data services; fixed-line telecommunications using intercity fiber optic networks; and Internet-TV using Fiber to the building technology. The company also sells equipment, infrastructure, and accessories. VEON Ltd. was founded in 1992 and is headquartered in Amsterdam, the Netherlands.