AST SpaceMobile vs. Rocket Lab: Which Space Stock Is a Better Buy in 2026?

Space exploration is no longer limited to government agencies with massive budgets. As private companies race to dominate the final frontier, investors are looking to AST SpaceMobile (NASDAQ:ASTS) and Rocket Lab USA (NASDAQ:RKLB) to see which stock offers a smoother flight.

While both companies operate above the atmosphere, their business models are worlds apart. AST SpaceMobile focuses on providing cellular broadband directly to standard smartphones from space, while Rocket Lab provides a full suite of launch services and satellite components.

The case for AST SpaceMobile

AST SpaceMobile aims to eliminate dead zones by building a satellite constellation that connects directly to the billions of mobile phones already in use. The company works with mobile network operators like AT&T (NYSE:T), Verizon (NYSE:VZ), and Vodafone (NASDAQ:VOD) through revenue-sharing agreements rather than selling directly to consumers. Customer concentration like this adds a layer of risk to the business, as the company depends on these commercial partners for the majority of its revenue.

In tech stocks like this, growth often precedes profits. In FY 2025, revenue skyrocketed 1,500% (yes, you read that right) to $70.9 million. The company still reported a net loss as it continues to build out its satellite constellation.

As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 1.2x. This ratio measures total debt against shareholder equity to show how a company finances its operations. The current ratio, which measures the ability to pay short-term debts with current assets, was approximately 16.4x. During FY 2025, free cash flow was nearly negative $1.1 billion, representing the cash remaining after accounting for operating costs and equipment purchases.

The case for Rocket Lab USA

Rocket Lab USA has established itself as a reliable provider of small-satellite launches and space systems. The company serves high-profile clients including NASA and the United States Department of War. Note that its top five customers accounted for nearly 49% of total revenue in 2025, indicating a high level of customer concentration risk that investors should monitor.

The company has delivered strong operational numbers in recent years. In FY 2025, revenue surged 38% year over year to $601.8 million. While the top line is expanding, Rocket Lab reported a net loss of $198.2 million as it invests heavily in its larger Neutron rocket.

As of its December 2025 balance sheet, the company maintains a conservative debt-to-equity ratio of approximately 0.1x. Its current ratio of nearly 4.1x suggests a healthy cushion for meeting near-term financial obligations. Free cash flow for FY 2025 was approximately negative $321.8 million, reflecting the ongoing capital requirements of developing new launch vehicles and expanding manufacturing capacity.

Risk profile comparison

AST SpaceMobile faces significant hurdles related to the technical complexity of its satellite design. Any delays in satellite assembly or launch schedules could force the company to raise more capital, which might not be available on favorable terms. Furthermore, the company must compete with satellite giants like SpaceX, which operates the Starlink network, and navigate complex international spectrum regulations.

Rocket Lab faces risks inherent to space flight, including the potential loss of customer payloads and reputational damage in the event of a launch failure. The company is also under pressure to successfully launch its new Neutron rocket to compete for larger contracts. Competition from both established aerospace firms and low-cost emerging players could impact pricing and future market share.

Valuation comparison

Rocket Lab USA appears more attractively valued on a price-to-sales basis, though both companies currently trade at high multiples due to their early-stage growth profiles.

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Which stock would I buy in 2026?

AST SpaceMobile and Rocket Lab are two of the most popular space stocks on the market today. While Rocket Lab stock has surged a massive 434% in one year, as of this writing, AST SpaceMobile shares have gained nearly 340% over the same period.

AST SpaceMobile is still largely in the build-out mode but is rapidly expanding its ground network. It plans to launch BlueBird 8, BlueBird 9, and BlueBird 10 into low Earth orbit in mid-June and aims to have nearly 45 BlueBird satellites in orbit for the full year. That’s the number it needs to be able to provide continuous commercial coverage in key markets like the U.S. The company is rapidly scaling production at its 500,000-square-foot facility.

The mid-June launch is the next biggest catalyst for the stock. If all three satellites deploy their massive arrays correctly, it will validate their manufacturing cadence and heavily boost investor confidence in AST SpaceMobile. A delay or deployment issue could do the reverse.

Rocket Lab charges companies and governments to launch payloads into space and manufactures high-margin space hardware. It operates two business segments: Launch Services (building and launching rockets) and Space Systems (building satellites, flight software, and space components). Interestingly, Space Systems has now outgrown the company’s launch business, accounting for 58% of its backlog in the first quarter.

Q1 was a bumper quarter, with Rocket Lab’s revenue surging 63.5% to a record. Rocket Lab ended the quarter with $2.2 billion in backlog, up 20% sequenatially. It booked 31 new launches in Q1 and now has over 70 launches in its backlog, its highest-ever. The company is second only to Elon Musk’s SpaceX in rockets, with its small Electron rocket proving a big hit. Focus is on Neutron next, a large, reusable medium-lift rocket that will compete directly with SpaceX’s Falcon 9 for commercial and defense contracts. Rocket Lab announced five Neutron launches in Q1 even as it prepares to debut the rocket in the coming months.

So which stock is the better buy? If I were to pick one, I’d go for Rocket Lab. Two rapidly growing revenue streams, record backlog, successful launches, and steady manufacturing expansion lay the foundation for a solid future.

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile and Rocket Lab. The Motley Fool recommends Verizon Communications and Vodafone Group Public. The Motley Fool has a disclosure policy.