Head-To-Head Analysis: Cambium Networks (NASDAQ:CMBM) and Gogo (NASDAQ:GOGO)

Cambium Networks (NASDAQ:CMBM) and Gogo (NASDAQ:GOGO) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Volatility and Risk

Cambium Networks has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Gogo has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Profitability

This table compares Cambium Networks and Gogo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cambium Networks	N/A	N/A	N/A
Gogo	-0.65%	71.74%	5.17%

Institutional and Insider Ownership

87.2% of Cambium Networks shares are owned by institutional investors. Comparatively, 69.6% of Gogo shares are owned by institutional investors. 57.3% of Cambium Networks shares are owned by company insiders. Comparatively, 25.8% of Gogo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Cambium Networks and Gogo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cambium Networks	$220.20 million	0.19	-$77.42 million	($3.03)	-0.49
Gogo	$444.71 million	1.39	$13.75 million	($0.05)	-92.20

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Cambium Networks and Gogo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cambium Networks	1	0	0	0	1.00
Gogo	1	2	2	0	2.20

Gogo has a consensus price target of $14.83, suggesting a potential upside of 221.76%. Given Gogo’s stronger consensus rating and higher probable upside, analysts clearly believe Gogo is more favorable than Cambium Networks.

Summary

Gogo beats Cambium Networks on 9 of the 14 factors compared between the two stocks.

About Cambium Networks

Cambium Networks Corporation, together with its subsidiaries, engages in the design, development, and manufacture of wireless broadband and Wi-Fi networking infrastructure solutions. The company offers point-to-point fixed wireless backhaul and point-to-multipoint fixed wireless solutions; and enterprise solutions comprising cnMatrix cloud-managed wireless-aware switching solution, Xirrus Wi-Fi solutions, and Wi-Fi 6/6E access points which support cnMaestro and Xirrus XMS management. It also offers cnMatrix Ethernet enterprise switching solutions; cnMaestro and cnMaestro X network management platform that provide users with an integrated, intelligent, and easy to use tool for end-to-end network management; network planning tools, such as cnHeat, a network planning subscription service that provides a heat map coverage model display of locations for FWB connectivity; LINKPlanner that allows users to visualize and analyze hypothetical network deployment scenarios to evaluate performance and reliability; and cnArcher, a smartphone app that accelerates installation and deployment of fixed wireless products by field technicians. The company's products are used in broadband access, wireless backhaul, Internet of Things, public safety, national security, and defense communications networks, and Wi-Fi access applications. It serves public or private network operators; broadband internet service providers; mobile network operators; mid-market enterprises, such as education, hospitality, multi-dwelling units, and retail; state and local government; energy, mining, rail operator and utility industries; and military agencies in North America, Europe, the Middle East, Africa, the Caribbean and Latin America, and the Asia Pacific. The company was formerly known as Vector Cambium Holdings (Cayman), Ltd. and changed its name to Cambium Networks Corporation in 2018. Cambium Networks Corporation was founded in 2011 and is headquartered in Rolling Meadows, Illinois.

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.”