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ASTS vs. VSAT: Which Satellite Stock is the Better Buy Today?
Read MoreHide Full Article
Key Takeaways
Viasat outperforms AST SpaceMobile in valuation, growth stability, and overall stock performance.
VSAT's ViaSat-3 platform boosts bandwidth, global reach, and supports rising IFC and ARPU growth.
ASTS expands LEO network with BlueBird satellites but faces rising costs and competitive pressure.
AST SpaceMobile, Inc. (ASTS - Free Report) and Viasat, Inc. (VSAT - Free Report) are two leading communications services providers aiming to deliver global connectivity via satellites. AST SpaceMobile is building the world’s first and only global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio. The SpaceMobile Service is provided by a constellation of high-powered, large phased-array satellites in low Earth orbit (LEO) using low-band and mid-band spectrums controlled by Mobile Network Operators (MNOs) in areas lacking terrestrial network coverage.
Viasat operates a fleet of GEO (geostationary) satellites to provide high-speed, high-capacity Internet access, especially in areas where traditional terrestrial broadband service is unavailable. With an expansive field of vision, enhanced satellite productivity and flexible bandwidth economics, the GEO satellites provide solutions for various sectors like aviation, maritime, defense and enterprise, including IoT applications.
Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for AST SpaceMobile
AST SpaceMobile has completed the unfolding of BlueBird 6, the first of its next-generation satellites. Featuring the largest commercial phased array in LEO at nearly 2,400 square feet, the satellite marks a 3.5x increase in size over its predecessors (BlueBird 1-5) with 10x data capacity. The company is slated to launch BlueBird 7 in the near future. It plans to deploy 45 to 60 satellites into orbit by the end of 2026. This is likely to strengthen its position as one of the leading space-based cellular broadband service providers in the market.
Utilizing large phased array antennas, AST SpaceMobile's technology is backed by more than 3,800 patents and patent-pending claims. This design aims to deliver global cellular coverage by eliminating dead zones and providing space-based connectivity to areas without broadband service. By connecting directly to standard smartphones at broadband speeds, these advanced phased arrays eliminate the need for special equipment, enhancing current mobile networks while ensuring seamless use of existing mobile phones. The SpaceMobile service is compatible with all major brands available in the market and connects directly to everyday mobile phones.
AST SpaceMobile has partnered with leading carriers, such as AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) , to tap into a pre-existing pool of cell customers and raise funds to help build a worldwide satellite network. This has enhanced cellular coverage in the United States, essentially eliminating dead zones and empowering remote areas of the country with space-based connectivity.
However, unfavorable macroeconomic conditions, including rising inflation, higher interest rates, capital market volatility, tariff imposition and geopolitical conflicts, are negatively impacting the company’s operations. These have led to continued fluctuations in satellite material prices, resulting in increased capital costs and pressure on the company’s financial performance. In addition, AST SpaceMobile faces severe competition from existing and new industry leaders like SpaceX’s Starlink and Globalstar, which are developing satellite communications technology using LEO constellations. To combat such competitive pressure, ASTS has to continuously customize its network offerings, enhance the cost-effectiveness of its products and services and boost the satellite data networks, which increases operating costs and reduces margins.
The Case for Viasat
Viasat is ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will have nearly 10 times the bandwidth capacity of ViaSat-2. These satellites will be capable of covering one-third of the world, including all of the Americas. The second ViaSat-3 will cover the Europe, the Middle East and Africa region. The ViaSat-3 platform will help form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service. In a nutshell, Viasat has garnered enough economies of scale and scope to serve vast emerging markets in South America, Africa, the Middle East and Western Asia. Hence, the momentous market traction of ViaSat-1 and ViaSat-2 satellites, coupled with strategically planned ViaSat-3 satellites, is likely to provide the company with a solid competitive edge over its peers.
Viasat’s Satellite Services business is progressing well with key metrics, including ARPU (average revenue per user) and revenues, showing impressive growth. ARPU is growing on the back of a solid retail distribution network, which accounts for a rising proportion of a high-value and high-bandwidth subscriber base. Furthermore, the growing adoption of in-flight Wi-Fi services in commercial aircraft is proving conducive to business growth. Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. Viasat has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, which makes it believe that mobile broadband will act as a profit churner with a significant improvement in in-flight connectivity (IFC) revenues.
However, Viasat operates in a dynamic and competitive market, owing to which it has to continuously customize its network offering per client needs, enhance the cost-effectiveness of its products and services and boost the satellite data networks. Increased competition leads to price reductions, reduced margins and loss of market share, which hurts the operating results. Viasat’s satellite business is affected by the seasonality of demand due to traditional retail selling periods. In addition, a highly complex technology increases the operating risks. For instance, problems associated with the power sub-systems, control sub-systems and degradation or unforeseen anomalies in space can pose material threats to profitability.
How Do Zacks Estimates Compare for ASTS & VSAT?
The Zacks Consensus Estimate for AST SpaceMobile’s 2026 sales implies year-over-year growth of 153%, while that of EPS suggests a rise of 25.4%. The EPS estimates have been trending southward (down 35.1%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Viasat’s fiscal 2026 sales implies year-over-year growth of 3.3%, while that for EPS indicates growth of 718.7%. The EPS estimates have been trending northward (up 197.7%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of ASTS & VSAT
Over the past year, AST SpaceMobile has gained 273.1% compared with the industry’s growth of 58%. Viasat is up a stellar 407.9% over the same period.
Image Source: Zacks Investment Research
Viasat looks more attractive than AST SpaceMobile from a valuation standpoint. Going by the price/sales ratio, Viasat’s shares currently trade at 1.41 forward sales, significantly lower than AST SpaceMobile’s 117.04.
Both companies expect their sales and earnings to improve in 2026. Viasat has shown a relatively steady revenue growth for years, while AST SpaceMobile has been facing a bumpy road. In terms of price performance, Viasat has outperformed AST SpaceMobile and looks more attractive in terms of valuation. Viasat is relatively better placed than AST SpaceMobile in most operating metrics and seems to be a better investment option at the moment.
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ASTS vs. VSAT: Which Satellite Stock is the Better Buy Today?
Key Takeaways
AST SpaceMobile, Inc. (ASTS - Free Report) and Viasat, Inc. (VSAT - Free Report) are two leading communications services providers aiming to deliver global connectivity via satellites. AST SpaceMobile is building the world’s first and only global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio. The SpaceMobile Service is provided by a constellation of high-powered, large phased-array satellites in low Earth orbit (LEO) using low-band and mid-band spectrums controlled by Mobile Network Operators (MNOs) in areas lacking terrestrial network coverage.
Viasat operates a fleet of GEO (geostationary) satellites to provide high-speed, high-capacity Internet access, especially in areas where traditional terrestrial broadband service is unavailable. With an expansive field of vision, enhanced satellite productivity and flexible bandwidth economics, the GEO satellites provide solutions for various sectors like aviation, maritime, defense and enterprise, including IoT applications.
Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for AST SpaceMobile
AST SpaceMobile has completed the unfolding of BlueBird 6, the first of its next-generation satellites. Featuring the largest commercial phased array in LEO at nearly 2,400 square feet, the satellite marks a 3.5x increase in size over its predecessors (BlueBird 1-5) with 10x data capacity. The company is slated to launch BlueBird 7 in the near future. It plans to deploy 45 to 60 satellites into orbit by the end of 2026. This is likely to strengthen its position as one of the leading space-based cellular broadband service providers in the market.
Utilizing large phased array antennas, AST SpaceMobile's technology is backed by more than 3,800 patents and patent-pending claims. This design aims to deliver global cellular coverage by eliminating dead zones and providing space-based connectivity to areas without broadband service. By connecting directly to standard smartphones at broadband speeds, these advanced phased arrays eliminate the need for special equipment, enhancing current mobile networks while ensuring seamless use of existing mobile phones. The SpaceMobile service is compatible with all major brands available in the market and connects directly to everyday mobile phones.
AST SpaceMobile has partnered with leading carriers, such as AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) , to tap into a pre-existing pool of cell customers and raise funds to help build a worldwide satellite network. This has enhanced cellular coverage in the United States, essentially eliminating dead zones and empowering remote areas of the country with space-based connectivity.
However, unfavorable macroeconomic conditions, including rising inflation, higher interest rates, capital market volatility, tariff imposition and geopolitical conflicts, are negatively impacting the company’s operations. These have led to continued fluctuations in satellite material prices, resulting in increased capital costs and pressure on the company’s financial performance. In addition, AST SpaceMobile faces severe competition from existing and new industry leaders like SpaceX’s Starlink and Globalstar, which are developing satellite communications technology using LEO constellations. To combat such competitive pressure, ASTS has to continuously customize its network offerings, enhance the cost-effectiveness of its products and services and boost the satellite data networks, which increases operating costs and reduces margins.
The Case for Viasat
Viasat is ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will have nearly 10 times the bandwidth capacity of ViaSat-2. These satellites will be capable of covering one-third of the world, including all of the Americas. The second ViaSat-3 will cover the Europe, the Middle East and Africa region. The ViaSat-3 platform will help form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service. In a nutshell, Viasat has garnered enough economies of scale and scope to serve vast emerging markets in South America, Africa, the Middle East and Western Asia. Hence, the momentous market traction of ViaSat-1 and ViaSat-2 satellites, coupled with strategically planned ViaSat-3 satellites, is likely to provide the company with a solid competitive edge over its peers.
Viasat’s Satellite Services business is progressing well with key metrics, including ARPU (average revenue per user) and revenues, showing impressive growth. ARPU is growing on the back of a solid retail distribution network, which accounts for a rising proportion of a high-value and high-bandwidth subscriber base. Furthermore, the growing adoption of in-flight Wi-Fi services in commercial aircraft is proving conducive to business growth. Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. Viasat has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, which makes it believe that mobile broadband will act as a profit churner with a significant improvement in in-flight connectivity (IFC) revenues.
However, Viasat operates in a dynamic and competitive market, owing to which it has to continuously customize its network offering per client needs, enhance the cost-effectiveness of its products and services and boost the satellite data networks. Increased competition leads to price reductions, reduced margins and loss of market share, which hurts the operating results. Viasat’s satellite business is affected by the seasonality of demand due to traditional retail selling periods. In addition, a highly complex technology increases the operating risks. For instance, problems associated with the power sub-systems, control sub-systems and degradation or unforeseen anomalies in space can pose material threats to profitability.
How Do Zacks Estimates Compare for ASTS & VSAT?
The Zacks Consensus Estimate for AST SpaceMobile’s 2026 sales implies year-over-year growth of 153%, while that of EPS suggests a rise of 25.4%. The EPS estimates have been trending southward (down 35.1%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Viasat’s fiscal 2026 sales implies year-over-year growth of 3.3%, while that for EPS indicates growth of 718.7%. The EPS estimates have been trending northward (up 197.7%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of ASTS & VSAT
Over the past year, AST SpaceMobile has gained 273.1% compared with the industry’s growth of 58%. Viasat is up a stellar 407.9% over the same period.
Image Source: Zacks Investment Research
Viasat looks more attractive than AST SpaceMobile from a valuation standpoint. Going by the price/sales ratio, Viasat’s shares currently trade at 1.41 forward sales, significantly lower than AST SpaceMobile’s 117.04.
Image Source: Zacks Investment Research
ASTS or VSAT: Which is a Better Pick?
AST SpaceMobile and Viasat carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies expect their sales and earnings to improve in 2026. Viasat has shown a relatively steady revenue growth for years, while AST SpaceMobile has been facing a bumpy road. In terms of price performance, Viasat has outperformed AST SpaceMobile and looks more attractive in terms of valuation. Viasat is relatively better placed than AST SpaceMobile in most operating metrics and seems to be a better investment option at the moment.