Reviewing BlackBerry Limited (BBRY) and Gogo (GOGO)

BlackBerry Limited (NASDAQ: BBRY) and Gogo (NASDAQ:GOGO) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Insider & Institutional Ownership

63.3% of BlackBerry Limited shares are owned by institutional investors. Comparatively, 66.5% of Gogo shares are owned by institutional investors. 22.7% of BlackBerry Limited shares are owned by company insiders. Comparatively, 37.7% of Gogo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares BlackBerry Limited and Gogo’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BlackBerry Limited $1.14 billion 4.59 $124.00 million $0.20 49.25
Gogo $645.47 million 1.76 $74.39 million ($1.84) -7.14

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

Analyst Ratings

This is a summary of recent recommendations and price targets for BlackBerry Limited and Gogo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackBerry Limited 2 10 4 0 2.13
Gogo 1 1 4 0 2.50

BlackBerry Limited presently has a consensus price target of $9.27, indicating a potential downside of 5.93%. Gogo has a consensus price target of $13.69, indicating a potential upside of 4.25%. Given Gogo’s stronger consensus rating and higher possible upside, analysts clearly believe Gogo is more favorable than BlackBerry Limited.

Profitability

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

Net Margins Return on Equity Return on Assets
BlackBerry Limited 11.68% -1.67% -1.01%
Gogo -25.58% N/A -13.92%

Volatility & Risk

BlackBerry Limited has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Gogo has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

BlackBerry Limited Company Profile

BlackBerry Limited (BlackBerry) provides mobile communications solutions. The Company is engaged in the sale of smartphones and enterprise software and services. The Company’s products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging. It is engaged in providing enterprise mobility management (EMM) and mobile security, and offers a portfolio of enterprise software solutions and services that can be deployed across a range of ecosystems and devices, including BlackBerry Enterprise Service (BES) 12 and Good Platforms, BES12 Cloud, enterprise file-sync-and-share (EFSS), SecuSUITE for Enterprise, Enhanced subscriber identity module (SIM)-Based Licensing (ESBL), WorkLife by BlackBerry solution and Professional Cybersecurity Services. The BlackBerry Technology Solutions business unit consists of five units: QNX, Certicom, Paratek, the BlackBerry IoT Platform and Intellectual Property and Patent Licensing (IPPL).

Gogo Company Profile

Gogo Inc. is a holding company. The Company is a provider of in-flight broadband connectivity and connectivity-enabled services to commercial and business aviation. The Company operates through three segments: Commercial Aviation North America (CA-NA), Commercial Aviation Rest of World (CA-ROW) and Business Aviation (BA). The CA-NA segment offers air-to-ground (ATG) and satellite connectivity and entertainment services to commercial aircraft flying routes generally within North America. The CA-ROW segment offers satellite connectivity and entertainment services, using 2Ku and Ku solutions, to commercial aircraft flying routes outside of North America. The Company’s BA segment offers a suite of integrated equipment, network and Internet connectivity products and services to the business aviation market. As of December 31, 2016, it provided services on 2,943 commercial aircraft. The Company offers a package of airborne equipment for its ATG-4/ATG and satellite services.

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