Gogo Inc. (GOGO) vs Optimum Communications, Inc. (OPTU)

Gogo Inc. and Optimum Communications, Inc. are both Telecom Services companies. Optimum Communications, Inc. is the larger, with a market value of $396.7M against $310.3M — 1.3× the size. Optimum Communications, Inc. has negative trailing earnings, so its P/E is not meaningful; Gogo Inc. trades at 2,300×. Gogo Inc. grew revenue faster over the last twelve months: 30.0% against −4.36%. Gogo Inc. has the higher net margin (−0.09% vs −58.2%) and the higher return on invested capital (7.46% vs −9.40%). Across the 17 metrics below, Gogo Inc. leads on 12 and Optimum Communications, Inc. on 5.

Valuation

Metric GOGO OPTU Telecom Services median
P/E 2,300.00 n/m 13.27
P/S 0.35 0.05 0.95
P/B 2.60 n/m 1.47
Price to free cash flow n/m n/m 8.72
EV/EBITDA 6.11 n/m 6.85
EV/Sales 1.18 3.06 1.87
Earnings yield 0.04% (1,028.71%) 1.66%
Free cash flow yield (7.28%) (30.75%) 5.53%

Profitability

Metric GOGO OPTU Telecom Services median
Gross margin 41.60% 69.90% 51.26%
Operating margin 11.54% (35.34%) 7.62%
Net margin (0.09%) (58.15%) 4.22%
Free cash flow margin (2.53%) (1.58%) 4.73%
Return on equity (0.76%) 158.83% 5.80%
Return on assets (0.07%) (16.32%) 0.00%
Return on invested capital 7.46% (9.40%) 3.41%

Growth

Metric GOGO OPTU Telecom Services median
Revenue growth (TTM) 30.03% (4.36%) 3.31%
EPS growth (last fiscal year) (10.00%) (1,718.18%) —
Revenue growth, 5-year CAGR 27.55% (2.79%) 1.50%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GOGO OPTU Telecom Services median
Debt to equity 6.77 (4.82) 0.63
Current ratio 1.73 0.32 1.13
Net debt to EBITDA 3.91 15.57 1.86

Dividend

Metric GOGO OPTU Telecom Services median
Dividend yield — — 4.06%
Payout ratio 0.00 0.00 0.00

Size

Metric GOGO OPTU Telecom Services median
Market cap 310.32m 396.69m 3.06b

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