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

The burgeoning space economy offers massive potential for long-term investors. Whether you prefer the satellite broadband focus of AST SpaceMobile Inc (NASDAQ:ASTS) or the diversified launch services of Rocket Lab USA Inc (NASDAQ:RKLB), deciding which is the better buy is key.

AST SpaceMobile aims to build a global cellular network accessible by standard smartphones, while Rocket Lab provides reliable launch capabilities and satellite manufacturing. Both are leaders in the commercialization of space, yet they operate in different niches and carry unique financial profiles that investors must weigh carefully in 2026.

The case for AST SpaceMobile

AST SpaceMobile builds a space-based cellular network that connects directly to standard smartphones without specialized hardware. It partners with roughly 60 mobile network operators, including AT&T Inc (NYSE:T), Vodafone (NASDAQ:VOD), and Verizon Communications (NYSE:VZ), to provide global coverage to nearly 3 billion subscribers. Customer concentration like this adds a layer of risk to the business, though these partnerships are central to its long-term scaling strategy.

In FY 2025, revenue reached approximately $70.9 million, a substantial jump from the $4.4 million reported in the prior fiscal year. The company reported a net loss of nearly $342 million for the period. While revenue growth is accelerating as the company begins its commercial rollout, profitability remains a distant goal during this build-out phase.

The current debt-to-equity ratio is roughly 1.2x, showing the company relies more on debt than equity to fund its operations. Free cash flow, which is cash flow from operations minus capital expenditures, was more than negative $1.1 billion for FY 2025, as the firm invested heavily in its proprietary manufacturing and launch capabilities.

The case for Rocket Lab

Rocket Lab operates as a vertically integrated provider of launch services and space systems components. The company is known for its Electron rocket and is currently developing the larger Neutron launch vehicle to compete for bigger payloads. Its customer base is diverse, including NASA and the U.S. Department of Defense, and it is moving toward becoming a platform provider through the pending acquisition of Iridium Communications (NASDAQ:IRDM).

For FY 2025, revenue reached $601.8 million, a 38% increase over the previous year. The company reported a net loss of nearly $198.2 million during this period. These figures indicate that while revenue is growing, the company remains in a phase of significant net losses.

The current debt-to-equity ratio is approximately 0.06x. This measures total debt relative to shareholder equity to show how much a company relies on borrowing. Free cash flow reached nearly negative $321.8 million in FY 2025. This metric represents cash flow from operations minus capital expenditures.

Risk profile comparison

AST SpaceMobile faces significant liquidity and funding risks as it requires substantial capital to construct and launch over 90 Block 2 BlueBird satellites. The company is also heavily dependent on receiving and maintaining regulatory approvals, such as FCC modification applications. Furthermore, its multi-class share structure concentrates voting power in the hands of the founder, limiting the influence of other shareholders on corporate governance. Failure to execute on the complex manufacturing and launch schedule could materially harm its growth prospects.

Rocket Lab faces risks related to its high launch cadence and the successful development of the Neutron vehicle, which recently experienced a hydrostatic testing failure. The company also carries financial pressure from its nearly $8 billion acquisition of Iridium Communications, which could impact its path to profitability. A heavy reliance on government contracts makes the company susceptible to shifts in federal budget priorities and procurement policy. Competition from well-funded rivals like Amazon.com Inc (NASDAQ:AMZN) also poses a long-term threat to its market share.

Valuation comparison

Rocket Lab appears cheaper on a sales basis. Neither company commands a forward price-to-earnings ratio because they are not seen turning a profit in the coming fiscal year.

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Rocket Lab made a huge splash in the market with its $8 billion acquisition of Iridium Communications. The combination promises to make Rocket Lab a space powerhouse, combining Rocket Lab’s launch technology and the communications spectrum offered by Iridium. In short, Rocket Lab could very well be a serious competitor to Space Exploration Technologies (NASDAQ:SPCX). Don’t overlook Rocket Lab’s expertise in sending small payloads into orbit, and it is closing in on the same reusable rocket technology that SpaceX has used to lower its customer prices.

Stand-alone Rocket Lab is seen boosting its revenue by about 33% this year and narrowing its net loss to about $145 milion. The Iridium acquisition is a big meal to swallow, but the combined business should generate $1.8 billion in revenue in 2026 and come close to breaking even, profit-wise. That gives the combined business a price-to-sales ratio of around 33.

AST SpaceMobile expects its space-based network to give it a significant business in a few years. Essentially, AST SpaceMobile is a direct-to-device play to provide full mobile phone compatibility for major carriers without the need for specialized equipment. Many of its potential clients are also equity holders in the company, including AT&T, Verizon, Vodafone, Alphabet Inc (NASDAQ:GOOG), American Tower (NYSE:AMT), Bell Canada, Telus (NYSE:TU), and Rakuten in Japan.

By the end of the year, the company should have 45 satellites, which will allow it to fully service the U.S., and that should start to supercharge revenue growth. For fiscal 2026, Wall Street sees $149 million in sales, jumping to $725 million the following year, when the company is projected to turn its first modest profit. Free cash flow appears much more manageable, with analysts expecting positive free cash flow in 2029.

Both of these are intriguing space-focused telecom businesses that promise to benefit from global communications expansion. One way to help increase your odds of investing well for the long run is to buy good companies at reasonable prices. AST Spacemolbile’s high P/S ratio of 188x is much pricier than Rocket Lab’s 52.9x (30x if including Iridium). For that reason, Rocket Lab USA is the better stock to buy in 2026.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile, Alphabet, Amazon, American Tower, and Rocket Lab. The Motley Fool recommends TELUS, Verizon Communications, and Vodafone Group Public. The Motley Fool has a disclosure policy.