Comparing Comtech Telecommunications (NASDAQ:CMTL) & AST SpaceMobile (NASDAQ:ASTS)

AST SpaceMobile (NASDAQ:ASTS) and Comtech Telecommunications (NASDAQ:CMTL) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for AST SpaceMobile and Comtech Telecommunications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AST SpaceMobile	0	5	5	0	2.50
Comtech Telecommunications	0	0	1	0	3.00

AST SpaceMobile presently has a consensus price target of $48.41, indicating a potential upside of 0.34%. Comtech Telecommunications has a consensus price target of $6.00, indicating a potential upside of 197.03%. Given Comtech Telecommunications’ stronger consensus rating and higher probable upside, analysts clearly believe Comtech Telecommunications is more favorable than AST SpaceMobile.

Institutional & Insider Ownership

61.0% of AST SpaceMobile shares are owned by institutional investors. 34.2% of AST SpaceMobile shares are owned by company insiders. Comparatively, 2.1% of Comtech Telecommunications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares AST SpaceMobile and Comtech Telecommunications”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AST SpaceMobile	$4.42 million	3,913.71	-$300.08 million	($1.89)	-25.53
Comtech Telecommunications	$540.40 million	0.11	-$99.99 million	($10.02)	-0.20

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

Volatility & Risk

AST SpaceMobile has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500. Comparatively, Comtech Telecommunications has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Profitability

This table compares AST SpaceMobile and Comtech Telecommunications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AST SpaceMobile	-7,213.90%	-26.81%	-16.51%
Comtech Telecommunications	-51.28%	-15.38%	-3.34%

Summary

Comtech Telecommunications beats AST SpaceMobile on 8 of the 14 factors compared between the two stocks.

About AST SpaceMobile

AST SpaceMobile, Inc., together with its subsidiaries, develops and provides access to a space-based cellular broadband network for smartphones in the United States. Its SpaceMobile service provides cellular broadband services to end-users who are out of terrestrial cellular coverage. The company was founded in 2017 and is headquartered in Midland, Texas.

About Comtech Telecommunications

Comtech Telecommunications Corp., together with its subsidiaries, engages in the provision of next-gen telecommunication solutions in the United States and internationally. The company’s Satellite and Space Communications segment offers satellite ground station technologies, services and system integration that facilitates the transmission of voice, video, and data over GEO, MEO and LEO satellite constellations, including solid-state and traveling wave tube power amplifiers, modems, VSAT platforms, and frequency converters; and satellite communications and tracking antenna systems, including high precision full motion fixed and mobile X/Y tracking antennas, RF feeds, reflectors, and radomes. This segment also provides over-the-horizon microwave troposcatter equipment that can transmit digitized voice, video, and data over distances up to 200 miles using the troposphere and diffraction, including the Comtech; and solid-state, RF microwave high-power amplifiers and control components designed for radar, electronic warfare, data link, medical and aviation applications, as well as engages in the procurement and supply chain management of electrical, electronic, and electromechanical parts for satellite, launch vehicle, and manned space applications. Its Terrestrial and Wireless Networks segment offers next generation 911 solutions, which includes emergency call routing, location validation, policy-based routing rules, logging, and security functionality; emergency services IP network transport infrastructure for emergency services communications and support; call handling applications for public safety answering points; wireless emergency alerts solutions for network operators; and software and equipment for location-based and text messaging services for various applications including for public safety, commercial, and government services. The company was founded in 1967 and is headquartered in Melville, New York.