Gogo (NASDAQ:GOGO – Get Free Report) and Liberty Latin America (NASDAQ:LILA – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Institutional and Insider Ownership
69.6% of Gogo shares are owned by institutional investors. Comparatively, 18.5% of Liberty Latin America shares are owned by institutional investors. 25.8% of Gogo shares are owned by company insiders. Comparatively, 12.0% of Liberty Latin America shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Gogo and Liberty Latin America, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gogo | 0 | 1 | 2 | 0 | 2.67 |
| Liberty Latin America | 1 | 1 | 0 | 1 | 2.33 |
Valuation and Earnings
This table compares Gogo and Liberty Latin America”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gogo | $444.71 million | 3.30 | $13.75 million | $0.04 | 274.50 |
| Liberty Latin America | $4.46 billion | 0.36 | -$657.00 million | ($5.93) | -1.36 |
Gogo has higher earnings, but lower revenue than Liberty Latin America. Liberty Latin America is trading at a lower price-to-earnings ratio than Gogo, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gogo and Liberty Latin America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gogo | 1.05% | 88.04% | 5.97% |
| Liberty Latin America | -26.61% | -77.72% | -9.37% |
Volatility & Risk
Gogo has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Liberty Latin America has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.
Summary
Gogo beats Liberty Latin America on 13 of the 15 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 Liberty Latin America
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
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