Is ViaSat, Inc the Best In-Flight Wifi and Satellite Communications Stock? VSAT, GOGO & IRDM

Jim Cramer, the host of CNBC's Mad Money, recently touted ViaSat, Inc (NASDAQ: VSAT) as an in-flight WiFi or satellite communications related play, meaning its worth taking a closer look at the stock along with the performance of small cap in-flight WiFi provider Gogo Inc (NASDAQ: GOGO) and small cap satellite communications firm Iridium Communications Inc (NASDAQ: IRDM). I should mention that I have written about Gogo Inc in the past (Small Cap Gogo Inc (GOGO): Is There Turbulence Ahead? IRDM and Is In-flight WiFi Stock Gogo, Inc. (GOGO) the Next Iridium?) and Cramer also touched on some of the differences between the in-flight wifi service offerings of both. Cramer also interviewed ViaSat, Inc's CEO who said they had been waiting for a new satellite to "disrupt" the market.

What is ViaSat, Inc?

ViaSat, Inc produces innovative satellite and other digital communication products that enable fast, secure and efficient communications to any location. Product offerings include satellite networks for fixed-site and mobile communications; satellite antenna systems; wireless datalinks and terminals for combat situational awareness; Cybersecurity and Information Assurance for military networking and encrypted data storage; mobile IP networking for soldiers; communication microprocessor chipsets; application and communication acceleration; satellite network and RF system design; and communication simulation and training systems while service offerings include global mobile satellite services for government and commercial aircraft, vehicles and seagoing vessels along with satellite internet access and other broadband services for consumers, business, and government customers in the US.

As for potential performance peers or competitors, small cap Gogo Inc's proprietary Air-To-Ground broadband network allows passengers with laptops and other WiFi enabled devices can get online on all domestic AirTran Airways and Virgin America flights and on select Air Canada, Alaska Airlines, American Airlines, Delta Air Lines, Frontier Airlines, United Airlines and US Airways flights plus on thousands of business aircraft while small cap Iridium Communications' predecessor was Iridium SSC which filed for bankruptcy after launching its satellite mobile service that was prohibitively expensive for most consumers at the time. The company eventual remerged as Iridium Communications which remains the only satellite communications company offering truly global voice and data communications coverage just about everywhere on the planet thanks to 66 low-Earth orbiting (LEO) cross-linked satellites.

What You Need to Know or Be Warned About ViaSat, Inc

ViaSat, Inc CEO's Mark Dankberg was also interviewed on CNBC in mid-February where said they had the following three goals for in-flight wifi:

Make sure everyone can use it at once rather than just 10 or 12 people. Deliver it at fast speeds (e.g. same on the ground experience). Make it affordable as its free for the first six months on Jetblue.

He commented that the system now has Netflix capability and the objective is to give users of mobile devices the same experience they would have on the ground.

A few days before the CNBC interview, ViaSat, Inc reported a fiscal third quarter 16% revenue increase to $332.6 million with the Satellite Services segment reporting a 37% revenue increase to $98.6 million, the Commercial Networks segment reporting a 34% revenue increase to $91.9 million and the Government Systems segment reporting a revenue decrease of $4 million to $142.0 million.  The net loss came in at $6.0 million verses $20.8 million while the CEO commented:

"The launch of Exede® In The Air via JetBlue's Fly-Fi™ service is an exciting example of opportunities uniquely enabled by our satellite network assets and innovative technologies. We aim to create an opportunity for disproportionately strong growth by redefining the in-flight Wi-Fi experience - engaging up to 10 times the number of passengers per flight, with speeds 10 to 100 times faster than competing systems, at costs far lower than possible with conventional infrastructure. We are fortunate to have similar disruptive opportunities in several key markets."

For this fiscal year, it looks like ViaSat, Inc would be sitting on a net loss (so far). However, investors should keep in mind that ViaSat, Inc has reported revenues of $1,119.69M (12 months ending 2013-03-29), $863.63M (12 months ending 2012-03-30), $802.21M (12 months ending 2011-04-01) and $688.08M (12 months ending 2010-04-02) along with a net loss of $41.17M (12 months ending 2013-03-29) and net income of $7.50M (12 months ending 2012-03-30), $36.12M (12 months ending 2011-04-01) and $31.14M (12 months ending 2010-04-02).

Share Performance: ViaSat, Inc vs. GOGO & IRDM

On Thursday, ViaSat, Inc fell 0.73% to $69.19 (VSAT has a 52 week trading range of $45.18 to $73.43 a share) for a market cap of $3.19 billion plus the stock is up 47.9% over the past year and up 271% over the past five years. Here is a look at the performance of ViaSat, Inc verses that of Gogo Inc and Iridium Communications:

As you can see from the above performance chart, ViaSat, Inc has been a steady performer for investors while Iridium Communications has trended downward and Gogo Inc has been all over the place.

Finally, here is a look at the latest technical charts for all three stocks:

The Bottom Line. Given the opportunities presented by in-flight wifi, ViaSat, Inc's recent losses may not matter for the long haul – meaning this is an in-flight wifi or satellite communications stock that's worth a much closer look at by investors.