Critical Analysis: AST SpaceMobile (NASDAQ:ASTS) & Aviat Networks (NASDAQ:AVNW)

AST SpaceMobile (NASDAQ:ASTS) and Aviat Networks (NASDAQ:AVNW) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for AST SpaceMobile and Aviat Networks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AST SpaceMobile	0	3	5	0	2.63
Aviat Networks	0	0	5	0	3.00

AST SpaceMobile currently has a consensus target price of $45.34, indicating a potential upside of 0.08%. Aviat Networks has a consensus target price of $37.60, indicating a potential upside of 52.91%. Given Aviat Networks’ stronger consensus rating and higher probable upside, analysts clearly believe Aviat Networks is more favorable than AST SpaceMobile.

Institutional & Insider Ownership

61.0% of AST SpaceMobile shares are owned by institutional investors. Comparatively, 78.6% of Aviat Networks shares are owned by institutional investors. 41.8% of AST SpaceMobile shares are owned by company insiders. Comparatively, 4.1% of Aviat Networks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

AST SpaceMobile has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500. Comparatively, Aviat Networks has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500.

Earnings & Valuation

This table compares AST SpaceMobile and Aviat Networks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AST SpaceMobile	$4.42 million	3,244.02	-$300.08 million	($1.99)	-22.77
Aviat Networks	$408.08 million	0.77	$10.76 million	($0.20)	-122.95

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

Profitability

This table compares AST SpaceMobile and Aviat Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AST SpaceMobile	-7,033.22%	-23.56%	-13.79%
Aviat Networks	-0.53%	5.06%	2.18%

Summary

Aviat Networks beats AST SpaceMobile on 9 of the 13 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 Aviat Networks

Aviat Networks, Inc. provides microwave networking and wireless access networking solutions in North America, Africa, the Middle East, Europe, Latin America, and the Asia Pacific. The company offers outdoor, indoor, and split-mount radios; microwave routers, switches, and trunking; and private LTE, virtual fiber, and element management products; and hosted software products, such as aviat design, frequency assurance software, and health assurance software. It also provides project services, which includes design and engineering, site and path surveys, assembly and integrations, project management, and install and commission; and managed services, such as network and interface monitoring, network health, onsite maintenance, and remote upgrades. In addition, the company offers support services, including extended warranty, warranty plus, provision support, and license key management, as well as instructor and virtual instructor led training, e-learning and certification services. It serves communications service providers and private network operators, including federal, state and local government agencies, transportation agencies, energy and utility companies, public safety agencies, and broadcast network operators. The company markets its products through a direct sales, service, and support organization; indirect sales channels comprising dealers, resellers, and sales representatives; and through online. Aviat Networks, Inc. company was incorporated in 2006 and is headquartered in Austin, Texas.