Comparing Dropcar (DCAR) and Gogo (NASDAQ:GOGO)

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gogo $699.09 million 0.52 -$171.99 million ($2.17) -1.92
Dropcar $16.74 million 0.23 N/A N/A N/A

Dropcar has lower revenue, but higher earnings than Gogo.

Profitability

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

Net Margins Return on Equity Return on Assets
Gogo -16.60% N/A -10.92%
Dropcar N/A -180.38% -95.33%

Risk and Volatility

Gogo has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Dropcar has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500.

Institutional & Insider Ownership

67.7% of Gogo shares are owned by institutional investors. Comparatively, 1.4% of Dropcar shares are owned by institutional investors. 36.2% of Gogo shares are owned by insiders. Comparatively, 21.0% of Dropcar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Gogo and Dropcar, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gogo 1 5 1 0 2.00
Dropcar 0 0 0 0 N/A

Gogo presently has a consensus target price of $8.50, indicating a potential upside of 104.33%. Given Gogo’s higher possible upside, equities analysts clearly believe Gogo is more favorable than Dropcar.

Summary

Gogo beats Dropcar on 8 of the 10 factors compared between the two stocks.

Gogo Company Profile

Gogo Inc., through its subsidiaries, provides inflight broadband connectivity and wireless entertainment services to the aviation industry in the United States and internationally. It 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 inflight connectivity and wireless digital entertainment solutions to commercial airline passengers flying routes that generally begin and end within North America. The CA-ROW segment provides inflight connectivity and wireless digital entertainment solutions to passengers flying on foreign-based commercial airlines and flights outside of North America for North American based commercial airlines. The BA segment offers equipment for inflight connectivity, including voice and data services to the business aviation market. Its services include AVANCE, an inflight broadband service that utilizes air-to-ground (ATG) network and ATG spectrum; Passenger Entertainment, an inflight entertainment service; and satellite-based voice and data services through strategic alliances with satellite companies. This segment serves aircraft manufacturers, owners, and operators, as well as government and military entities. The company was founded in 1991 and is headquartered in Chicago, Illinois.

Dropcar Company Profile

DropCar, Inc. provides app-based automotive logistics and mobility services for consumers and the automotive industry. The company offers Vehicle Support Platform, a cloud-based platform and mobile app that help consumers and automotive-related companies in reducing the cost, hassles, and inefficiencies of owning a car or fleet of cars in urban centers. Its technology platform blends the efficiency and scale of cloud computing, machine learning, and connected cars with the trained drivers to move cars to/from fully staffed, secure garages to/from the people or businesses who own them. The company provides its mobile app for consumers to ease the cost and stress of owning a car in the city; and enterprise platform for dealerships, leasing companies, OEMs, and shared mobility companies to reduce costs, streamline logistics, and deepen relationships with customers. DropCar, Inc. was founded in 2015 and is based in New York, New York.

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