AST SpaceMobile vs. Intuitive Machines: Which Space Stock Is a Better Buy in 2026?

As the space economy moves from theory to reality, choosing between AST SpaceMobile (NASDAQ:ASTS) and Intuitive Machines (NASDAQ:LUNR) requires balancing massive addressable markets against the technical and financial risks of orbital hardware ventures.

These companies occupy different niches within the final frontier. AST SpaceMobile focuses on providing cellular broadband directly from space to standard smartphones. Meanwhile, Intuitive Machines builds the infrastructure needed for lunar delivery and data transmission. Both represent high-risk, high-reward plays for investors interested in the long-term expansion of the aerospace sector.

The case for AST SpaceMobile

AST SpaceMobile operates in the communications sector by developing a satellite network that connects directly to everyday mobile devices. In its latest annual report, filed for 2025, the company highlighted its focus on serving subscribers through AT&T, Verizon, and Vodafone. Customer concentration like this adds a layer of risk to the business.

In 2025, revenue reached nearly $71 million, reflecting a massive increase of roughly 1,505% over the previous year. This growth came alongside a net loss of approximately $342 million. The company continues to invest heavily in the launch of its BlueBird satellite constellation to achieve global coverage.

As of its June 2026 balance sheet, the debt-to-equity ratio is approximately 1.2x. This ratio measures total debt relative to shareholders' equity, with a higher ratio indicating greater reliance on borrowing. The current ratio, which measures the ability to cover short-term obligations with liquid assets, stands at nearly 13x, while trailing free cash flow was negative $1.6 billion.

The case for Intuitive Machines

Intuitive Machines provides lunar delivery and data services for civil and national security clients. Its primary business involves lunar delivery and data infrastructure for NASA and the Department of Defense. Customer concentration like this adds a layer of risk to the business.

In 2025, the company reported revenue of close to $210 million. This represented a slight decrease of nearly 7.9% compared to the prior fiscal period, as it moved through different stages of its lunar mission cycles. The company recorded a net loss of approximately $84 million for the year.

As of its June 2026 balance sheet, the debt-to-equity ratio is approximately -1.5x. This negative value indicates that total liabilities exceed shareholder equity. The current ratio is roughly 1.7x, while free cash flow for the year was negative $188 million.

Risk profile comparison

AST SpaceMobile faces intense competition from established providers and emerging players. The business model remains highly capital-intensive, resulting in ongoing losses and reliance on external financing. Furthermore, the company is involved in multiple securities class action lawsuits and is heavily dependent on its founder, Abel Avellan.

Intuitive Machines relies heavily on government contracts from NASA and the Department of Defense. These contracts are subject to funding volatility and potential termination risks. The company also faces integration challenges from its acquisition of Lanteris and remains subject to investigations regarding cybersecurity compliance.

Valuation comparison

Intuitive Machines appears to be the more conservatively priced option based on its Forward P/E and P/S ratio comparison.

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

Which stock would I buy in 2026?

Intuitive Machines is the stock I would buy right now. AST SpaceMobile stock trades at a higher forward P/E multiple. Both companies are building their businesses around earning recurring revenue streams from the burgeoning space economy, which could be worth trillions, according to some estimates. But the market may be undervaluing Intuitive Machines' prospects more than it is AST's.

AST's valuation reflects its potential to capture a huge market for direct-to-device connectivity. But its success is not guaranteed, as well-funded competitors with substantial advantages in resources and infrastructure are pursuing the same opportunity.

Intuitive Machines is operating in a less crowded field for what it is building. There are not many commercial companies with a heritage of providing specialized access to the lunar surface. If a space station ultimately gets built on the moon, this company could be worth a lot more than where it's trading right now.

Both stocks are high-risk, high-reward propositions for investors, so I would buy the one operating in a less crowded field and trading at a lower sales multiple.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile and Intuitive Machines. The Motley Fool recommends Verizon Communications and Vodafone Group Public. The Motley Fool has a disclosure policy.