Slam (NASDAQ:SLAM) & Gogo (NASDAQ:GOGO) Financial Analysis

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

Analyst Recommendations

This is a summary of current recommendations for Gogo and Slam, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gogo	0	2	2	0	2.50
Slam	0	0	0	0	N/A

Gogo presently has a consensus price target of $15.30, suggesting a potential upside of 59.04%. Given Gogo’s higher possible upside, analysts clearly believe Gogo is more favorable than Slam.

Valuation & Earnings

This table compares Gogo and Slam’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gogo	$397.58 million	3.08	$145.68 million	$1.17	8.22
Slam	N/A	N/A	$4.59 million	$0.11	101.09

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

Volatility and Risk

Gogo has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Slam has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gogo	38.61%	229.65%	10.80%
Slam	N/A	-11.70%	2.36%

Insider & Institutional Ownership

69.6% of Gogo shares are owned by institutional investors. Comparatively, 87.3% of Slam shares are owned by institutional investors. 26.0% of Gogo shares are owned by insiders. Comparatively, 0.2% of Slam shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Gogo beats Slam on 10 of the 12 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 Slam

Slam Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or related business combination with one or more businesses or entities. The company was incorporated in 2020 and is based in New York, New York.