Head-To-Head Comparison: AST SpaceMobile (NASDAQ:ASTS) & Telecom Italia (OTCMKTS:TIAOD)

AST SpaceMobile (NASDAQ:ASTS) and Telecom Italia (OTCMKTS:TIAOD) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations for AST SpaceMobile and Telecom Italia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AST SpaceMobile	2	6	2	1	2.18
Telecom Italia	0	0	0	0	0.00

AST SpaceMobile presently has a consensus price target of $87.60, indicating a potential upside of 28.11%. Given AST SpaceMobile’s stronger consensus rating and higher probable upside, research analysts clearly believe AST SpaceMobile is more favorable than Telecom Italia.

Valuation & Earnings

This table compares AST SpaceMobile and Telecom Italia”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AST SpaceMobile	$70.92 million	374.22	-$341.94 million	($1.78)	-38.42
Telecom Italia	N/A	N/A	N/A	$0.07	124.55

Telecom Italia has lower revenue, but higher earnings than AST SpaceMobile. AST SpaceMobile is trading at a lower price-to-earnings ratio than Telecom Italia, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

61.0% of AST SpaceMobile shares are owned by institutional investors. Comparatively, 35.6% of Telecom Italia shares are owned by institutional investors. 20.9% of AST SpaceMobile shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares AST SpaceMobile and Telecom Italia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AST SpaceMobile	-573.67%	-24.87%	-12.58%
Telecom Italia	N/A	N/A	N/A

Summary

AST SpaceMobile beats Telecom Italia on 7 of the 12 factors compared between the two stocks.

About AST SpaceMobile

AST SpaceMobile, Inc., together with its subsidiaries, develops and provides access to a space-based cellular broadband network for smartphones in the United States. Its SpaceMobile service provides cellular broadband services to end-users who are out of terrestrial cellular coverage. The company was founded in 2017 and is headquartered in Midland, Texas.

About Telecom Italia

Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers. The company also manages and develops a portfolio of regulated and unregulated wholesale services for fixed-line and mobile telecommunications operators; and development, engineering, construction, and operation of network infrastructures, information technology (IT), and systems and properties. Telecom Italia S.p.A. was incorporated in 1908 and is based in Milan, Italy.