AST SpaceMobile vs. GE Aerospace: Which Stock Is a Better Buy in 2026?

As the aerospace frontier expands, investors are weighing the explosive potential of AST SpaceMobile (NASDAQ:ASTS) against the established industrial dominance of GE Aerospace (NYSE:GE) to determine which better fits a 2026 portfolio.

AST SpaceMobile is pioneering a satellite-based cellular network designed to connect existing smartphones anywhere on Earth without special hardware. In contrast, GE Aerospace serves as a global backbone for aviation by manufacturing and maintaining engines for commercial and military aircraft. While both occupy the skies, they offer vastly different risk profiles and growth trajectories.

The case for AST SpaceMobile

AST SpaceMobile sells space-based cellular broadband connectivity by partnering with existing mobile network operators rather than competing with them. The company aims to eliminate cellular dead zones for nearly three billion potential subscribers through its proprietary satellite constellation and manufacturing facilities in Midland, Texas. It maintains key partnerships with major carriers like AT&T, Verizon, and Vodafone to provide direct-to-device services for standard smartphones.

During FY 2025, revenue reached nearly $70.9 million, which represented growth of approximately 1,505.2% over the prior year. Despite this massive top-line expansion, the business recorded a net loss of close to $341.9 million. This negative result led to a net margin of negative 482.2%, indicating that expenses significantly exceeded revenue as the company built out its network.

As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 1.2x. This ratio measures total debt relative to shareholder equity, meaning the company carries $1.20 in debt for every dollar of equity. The current ratio was approximately 16.4x, while free cash flow was nearly negative $1.1 billion as the company invests in its future as one of the emerging tech stocks in the satellite space.

The case for GE Aerospace

GE Aerospace operates as a world-leading provider of jet and turboprop engines for commercial and military aviation with more than 53,000 employees worldwide. The company generates revenue through the sale of new engines and long-term service contracts that keep those engines flying for decades. It supports diverse programs, including recent initiatives like the STARLAUNCH 1 design review and high-performance power electronics for future flight.

In FY 2025, the company reported revenue of close to $45.9 billion, a growth rate of nearly 18.5% compared to the previous fiscal year. Net income for the period was approximately $8.7 billion, resulting in a net margin of roughly 19.0%. This net margin shows the percentage of revenue remaining as profit after all operating expenses, interest, and taxes are paid.

The balance sheet for December 2025 showed a debt-to-equity ratio of nearly 1.1x. This metric compares total debt to shareholder equity to show how the company funds its operations and strategic acquisitions. The current ratio was approximately 1.0x, and free cash flow reached nearly $7.3 billion after paying for the capital investments necessary to maintain its global fleet.

Risk profile comparison

AST SpaceMobile faces significant regulatory risks because it must obtain global approvals for the radio spectrum it uses to provide satellite services. The company also handles execution risks related to the manufacturing and launching of its Block 2 satellites. Furthermore, it faces intense competition from well-funded rivals like SpaceX, and any failure to meet production targets could result in cost overruns or missed commercial service rollouts.

GE Aerospace deals with complex regulatory compliance, evidenced by a recent $36 million settlement with the U.S. Department of State regarding export control violations. The business must also manage operational safety risks where any incident could damage its reputation or lead to legal liabilities. Continuous innovation is required to maintain an edge against competitors such as RTX or Safran, which requires constant capital investment and strategic partnerships.

Valuation comparison

GE Aerospace offers a more established valuation based on Forward P/E and earnings estimates compared to the speculative P/S ratio of AST SpaceMobile.

Sector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

I'd go with GE Aerospace, and it's not a particularly close call. AST SpaceMobile’s plan for a space-based cellular network is certainly fascinating. The long-term vision is exciting, and the company is making progress. But it's also deeply unprofitable, burning through cash, and diluting shareholders along the way. The technology still has to prove itself at scale, and that could take years.

GE Aerospace, meanwhile, is one of the strongest industrial companies in the market right now. Orders are surging, its commercial services backlog is enormous, and the company is trending toward the high end of its already-raised 2026 guidance. Every time a LEAP engine powers a flight, GE collects aftermarket revenue. And that installed base is expected to grow substantially over the next several years. There's some geopolitical uncertainty to watch, but the underlying business is executing at a high level.

For a long-term investor, owning a proven, cash-generating industrial giant is often better than betting on a moonshot.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile, GE Aerospace, RTX, and Safran. The Motley Fool recommends Verizon Communications and Vodafone Group Public. The Motley Fool has a disclosure policy.