Better Space Stock: Rocket Lab vs. AST SpaceMobile
Key Points
Rocket Lab generates $601.8 million in annual revenue with a $1.85 billion backlog; AST SpaceMobile has just $18.5 million in annual revenue, but is earlier in its development.
AST's potential revenue could reach tens of billions if its satellite constellation succeeds, while Rocket Lab's Neutron rocket would let it compete directly with SpaceX for massive contracts.
Both stocks carry extreme valuations and execution risk, but Rocket Lab's proven track record makes it the safer bet.
- 10 stocks we like better than AST SpaceMobile ›
Rocket Lab (NASDAQ: RKLB) and AST SpaceMobile (NASDAQ: ASTS) are two of the hottest stocks in the space sector. Both have delivered massive returns over the past year. Both trade at valuations that demand exceptional execution. But the bets you're making with each are fundamentally different -- and understanding that distinction matters.
Rocket Lab vs. AST SpaceMobile: The numbers
Rocket Lab has a market capitalization of roughly $40 billion on trailing revenue of nearly $601.8 million. AST trades at $24 billion on just $18.5 million in revenue. That makes Rocket Lab very expensive, and AST extremely expensive.
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So what do you get for that? You can compare some of the headline numbers in the table below.
| Company Name | Sales (TTM) | Net Income (TTM) | Free Cash Flow (TTM) | Cash and Equivalents |
|---|---|---|---|---|
| Rocket Lab | $601.8 million | ($198.21 million) | ($321.81 million) | $1.0 billion |
| AST SpaceMobile | $18.5 million | ($303.8 million) | ($916.0 million) | $1.2 billion |
Data source: Company filings.
Rocket Lab is a more mature business with a proven rocket system and a Space Systems division -- think satellites and spacecraft -- generating record revenue and a backlog exceeding $1.8 billion, bolstered by a fresh $816 million defense contract.
AST is much earlier in its trajectory. It's more of a promise at this point, though it is at a major operational inflection point. The company has a handful of satellites in orbit, but is planning to launch dozens more by the end of this year and has recently inked a fresh defense contract of its own.
Rocket Lab vs. SpaceMobile: The opportunity
If AST succeeds in building a functioning satellite constellation and activates commercial service with partners like AT&T, Verizon, and Vodafone -- carriers collectively serving billions of subscribers -- the recurring revenue potential could be worth many billions annually -- maybe dozens of billions -- it's difficult to say with any certainty. The company is essentially creating its own business model, so any forecasts are best guesses.
Rocket Lab's upside is a bit easier to understand. Neutron, its medium-lift rocket targeting a late 2026 debut, would unlock constellation deployments and national security missions at dramatically higher per-launch revenue. And make it a more direct competitor of SpaceX, which brought in about $15 billion last year.
The bottom line: Rocket Lab or AST SpaceMobile?
I think Rocket Lab is the better bet. It has a stronger track record and offers a clearer, more defined opportunity.
That being said, both stocks are very expensive, and while there is potential for serious growth, there is serious execution risk that you need to take into account.
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Johnny Rice 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.
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