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

Choosing between a relatively new moonshot and a legacy industrial titan requires a clear look at risk and reward. Should you buy AST SpaceMobile (NASDAQ:ASTS) or GE Aerospace(NYSE:GE) today?

AST SpaceMobile is building a cellular network from space, while GE Aerospace focuses on its high-performing aerospace division. These companies represent opposite ends of the investing spectrum, as one seeks to disrupt global telecommunications while the other dominates the skies with established jet engine technology.

The case for AST SpaceMobile

AST SpaceMobile focuses on building the first space-based cellular broadband network designed to connect directly to standard, unmodified smartphones without needing additional hardware. The company partners with major mobile network operators, including AT&T (NYSE:T) and Verizon Communications (NYSE:VZ), to provide global coverage to nearly 3 billion potential subscribers. These commercial agreements include government applications through prime contractors, positioning the company to potentially capture a massive global audience of mobile users.

In FY 2025, revenue reached nearly $71 million, representing a massive increase of approximately 1,500% as the company began its initial satellite operations. Despite this growth, the company reported a net loss of close to $341.9 million and a net margin of roughly negative 480% for the same period. This reflects the early stage of its satellite constellation rollout, where heavy development costs still significantly outpace current service revenue.

Based on its December 2025 balance sheet, the company maintains a current ratio of roughly 16.4x, covering its short-term obligations with short-term assets. The debt-to-equity ratio is approximately 1.2x, which compares total debt to shareholder equity to show the company's financial leverage. Free cash flow was a net outflow of nearly $1.1 billion, representing cash from operations minus the capital expenditures required for its satellite network.

The case for GE Aerospace

GE Aerospace is focused on jet and turboprop engines and integrated systems for commercial, military, and general aviation aircraft. It was part of General Electric, which was split into three publicly traded businesses in 2024. GE Aerospace remains a primary engine supplier to major airlines and defense agencies in roughly 120 countries. This reinforces its prominent position among industrial stocks and its role in powering the global aviation infrastructure.

In FY 2025, revenue reached nearly $46 billion, an 18.5% increase compared to the previous year as demand for aviation services climbed. The company reported a net income of close to $8.7 billion, resulting in a net margin of approximately 19% for the fiscal period. This strong growth reflects high demand for its aerospace products and services across both commercial and military segments as flight volumes continue to rise globally.

As of the December 2025 balance sheet, the current ratio is roughly 1.0x, indicating that the company's current assets are approximately equal to its current liabilities. The debt-to-equity ratio is roughly 1.1x, which measures total debt relative to shareholders' equity and provides insight into the capital structure. Free cash flow was close to $7.3 billion, calculated as cash from operations minus capital expenditures, highlighting the company's ability to generate cash from its core business.

Risk profile comparison

AST SpaceMobile faces risks associated with its capital-intensive business model, which requires significant additional funding to launch its satellite constellation. It faces execution risk regarding its service development and relies on a limited number of launch providers. The competitive landscape includes satellite-based operators like Iridium Communications (NASDAQ:IRDM) and Globalstar (NASDAQ:GSAT).

GE Aerospace faces risks related to ongoing regulatory and legal exposure, including historic securities fraud litigation and export control violations. Operations are susceptible to global supply chain disruptions and the cyclical nature of the aerospace industry. The company also manages legal liabilities from past environmental and performance-related lawsuits.

Valuation comparison

GE Aerospace appears significantly cheaper based on its P/S ratio and Forward P/E. These metrics compare the stock price to revenue and future earnings estimates, respectively.

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

Which stock would I buy in 2026?

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, providing full mobile phone compatibility with 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 (NASDAQ:VOD), Alphabet Inc (NASDAQ:GOOGL), 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.

GE Aerospace is a market leader in aircraft engines, boasting the most installed engines "under wing," in industry parlance. The company has been focusing on increasing productivity and improving its supply chain by working closely with suppliers. These efforts have meaningfully improved the availability of components for GE Aerospace, helping it meet demand and increasing sales and margins.

Business continues to be good. Management expects growth from recent awards to produce engines for the new F-47 jet from Boeing Co (NYSE:BA), as well as a $1.4 billion award from the U.S. Marines. It also received commercial airline awards from United Airlines Holdings Inc. (NASDAQ:UAL), American Airlines Group Inc. (NYSE:AA), and Delta Air Lines Inc., totaling over $1 billion.

Revenue for the current year, fiscal 2026, is seen growing more than 18% to $52.3 billion, though net income probably lags that pace, growing 5% to $9.1 billion.

On balance, it's difficult to argue with GE Aerospace's market position and continued growth. AST SpaceMobile is a compelling business model, but it is arguable that it has a narrower competitive moat than GE Aerospace. Plus, ASTS demands quite a premium in today's market. Much cheaper is GE Aerospace, as its forward P/E and P/S ratios show, so for long-term investors, it's the better buy.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile, Alphabet, American Tower, Boeing, and GE Aerospace. The Motley Fool recommends Delta Air Lines, TELUS, Verizon Communications, and Vodafone Group Public. The Motley Fool has a disclosure policy.