Telesat (NASDAQ:TSAT) vs. AST SpaceMobile (NASDAQ:ASTS) Critical Contrast

Telesat (NASDAQ:TSATGet Rating) and AST SpaceMobile (NASDAQ:ASTSGet Rating) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares Telesat and AST SpaceMobile’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telesat N/A 13.08% 3.98%
AST SpaceMobile N/A -21.69% -13.84%

Risk and Volatility

Telesat has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, AST SpaceMobile has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Earnings and Valuation

This table compares Telesat and AST SpaceMobile’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telesat $604.93 million 0.27 $82.62 million N/A N/A
AST SpaceMobile $12.40 million 112.32 -$18.97 million N/A N/A

Telesat has higher revenue and earnings than AST SpaceMobile.

Insider & Institutional Ownership

24.8% of AST SpaceMobile shares are held by institutional investors. 40.6% of Telesat shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Telesat and AST SpaceMobile, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telesat 0 0 0 0 N/A
AST SpaceMobile 0 0 2 0 3.00

AST SpaceMobile has a consensus price target of $30.50, indicating a potential upside of 297.65%. Given AST SpaceMobile’s higher probable upside, analysts plainly believe AST SpaceMobile is more favorable than Telesat.

Summary

Telesat beats AST SpaceMobile on 6 of the 10 factors compared between the two stocks.

About Telesat (Get Rating)

Telesat Corporation, a satellite operator, provides mission-critical communications solutions to broadcast, enterprise, and consulting customers worldwide. The company’s satellite-based services allow direct-to-home (DTH) service providers to deliver television programming, audio, and information channels directly to customers’ homes; and enables broadcasters, cable networks, and DTH service providers to transmit television programming services. It offers value-added services that include satellite capacity, digital encoding of video channels, authorization, and uplinking and downlinking services; and occasional use services for the broadcast of video news, sports, and live event coverages. The company also provides satellite capacity and end-to-end services comprising space segment services and terrestrial facilities for enterprise connectivity, and internet and cellular backhaul; rural telephony to telecommunications carriers and network services integrators; and other satellite services. In addition, it offers direct-to-consumer broadband services; communications services for the oil and gas and mining industries; and broadband communication services to maritime and aeronautical markets comprising commercial airplanes and vessels. Further, the company operates satellite and hybrid satellite/terrestrial networks. Additionally, it provides satellite operator services; and consulting services related to space and earth segments, government studies, research and development, and satellite control services. The company offers its services primarily through a direct sales force. As of December 31, 2020, it operated a fleet of 15 in-orbit geostationary satellites and a Canadian payload on the ViaSat-1 satellite. The company was founded in 1969 and is headquartered in Ottawa, Canada. Telesat Corporation is a subsidiary of Loral Space & Communications Inc.

About AST SpaceMobile (Get Rating)

AST SpaceMobile, Inc. operates space-based cellular broadband network for mobile phones. Its SpaceMobile service provides mobile broadband services for users traveling in and out of areas without terrestrial mobile services on land, at sea, or in flight. The company is headquartered in Midland, Texas.

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