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AST SpaceMobile vs. Jabil: Which Connectivity Stock is a Better Buy?
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Key Takeaways
JBL is deemed the better pick as 2026 EPS is expected to rise 30.7% while ASTS earnings are set to fall.
ASTS gained 54.7% over the past year versus Jabil's 41.4%, but trades at a much richer sales multiple.
Jabil's 2026 EPS estimate held steady at $12.74, while ASTS estimates fell 53.4% over the past 60 days.
AST SpaceMobile, Inc. (ASTS - Free Report) and Jabil Inc. (JBL - Free Report) are key players in the communications-technology ecosystem with exposure to next-generation communications infrastructure. 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 spectrum controlled by Mobile Network Operators (MNOs) in areas lacking terrestrial network coverage.
Jabil is one of the largest global suppliers of electronics manufacturing services (EMS) solutions and operates in the broader communications and space-infrastructure ecosystem. It offers advanced manufacturing for networking, communications and space systems.
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 ASTS
AST SpaceMobile is reportedly on track to deploy approximately 45 BlueBird satellites in orbit by early 2027. The company has already deployed 13 commercial satellites (dubbed BlueBird) in LEO, marking a key advancement in developing a space-based mobile network infrastructure. BlueBird 14, 15 and 16 satellites are currently prepared and scheduled to ship for launch, while BlueBird satellites 17 through 46 are in various stages of production and assembly. Utilizing large phased array antennas measuring approximately 2,400 square feet, 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.
The SpaceMobile service is compatible with all major brands available in the market and connects directly to everyday mobile phones. It delivers broadband connectivity from space to unmodified mobile devices, providing a service to fill cellular coverage gaps in a differentiated approach compared to other space-based communication services. 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, elevated spending has overshadowed the company’s progress in satellite deployment and commercial partnerships. Unfavorable macroeconomic conditions, including rising inflation, higher interest rates, capital market volatility and geopolitical conflicts, have adversely impacted 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 JBL
With a presence across 100 locations in 30 countries, Jabil is likely to gain from secular growth drivers with strong margins and cash flow dynamics. Moreover, its unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good stead.
Management’s focus on improving working capital management and integrating sophisticated AI and ML capabilities to enhance the efficiency of its internal processes is a major tailwind. Jabil’s top line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets. The company is likely to gain from the rapid adoption of 5G wireless and cloud computing in the long run. It is benefiting from solid demand in key end markets, together with excellent operational execution and skillful management of supply-chain dynamics.
However, Jabil operates in a highly competitive environment, facing competition from both domestic and international electronic manufacturers, manufacturing service providers and designers like Sanmina Corporation (SANM - Free Report) . The tense geopolitical situation between the United States and China, and the wars in Europe and the Middle East remain headwinds. Against the backdrop of this global uncertainty, low demand in some consumer-centric markets is negatively impacting its margins.
How Do Zacks Estimates Compare for ASTS & JBL?
The Zacks Consensus Estimate for AST SpaceMobile’s 2026 sales implies year-over-year growth of 129.2%, while that of EPS suggests a decline of 69.4%. The EPS estimates have been lowered 53.4% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JBL’s 2026 sales indicates year-over-year growth of 17.3%, while that for EPS suggests an improvement of 30.7%. The EPS estimates have remained stable at $12.74 over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of ASTS & JBL
Over the past year, AST SpaceMobile has gained 54.7% compared with the industry’s growth of 21.8%. JBL has surged 41.4% over the same period.
Image Source: Zacks Investment Research
JBL looks more attractive than AST SpaceMobile from a valuation standpoint. Going by the price/sales ratio, JBL’s shares currently trade at 0.75 forward sales, significantly lower than AST SpaceMobile’s 44.49.
Both companies expect their sales to improve in 2026. However, ASTS’ earnings are likely to decline significantly, while JBL’s bottom line is expected to witness modest growth. JBL has shown relatively steady revenue growth for years, while AST SpaceMobile has been facing a bumpy road. In terms of price performance, AST SpaceMobile has outperformed JBL but is trading at a premium compared to the latter. With improved estimate revisions, JBL is relatively better placed than AST SpaceMobile and seems to be a better investment option at the moment.
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AST SpaceMobile vs. Jabil: Which Connectivity Stock is a Better Buy?
Key Takeaways
AST SpaceMobile, Inc. (ASTS - Free Report) and Jabil Inc. (JBL - Free Report) are key players in the communications-technology ecosystem with exposure to next-generation communications infrastructure. 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 spectrum controlled by Mobile Network Operators (MNOs) in areas lacking terrestrial network coverage.
Jabil is one of the largest global suppliers of electronics manufacturing services (EMS) solutions and operates in the broader communications and space-infrastructure ecosystem. It offers advanced manufacturing for networking, communications and space systems.
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 ASTS
AST SpaceMobile is reportedly on track to deploy approximately 45 BlueBird satellites in orbit by early 2027. The company has already deployed 13 commercial satellites (dubbed BlueBird) in LEO, marking a key advancement in developing a space-based mobile network infrastructure. BlueBird 14, 15 and 16 satellites are currently prepared and scheduled to ship for launch, while BlueBird satellites 17 through 46 are in various stages of production and assembly. Utilizing large phased array antennas measuring approximately 2,400 square feet, 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.
The SpaceMobile service is compatible with all major brands available in the market and connects directly to everyday mobile phones. It delivers broadband connectivity from space to unmodified mobile devices, providing a service to fill cellular coverage gaps in a differentiated approach compared to other space-based communication services. 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, elevated spending has overshadowed the company’s progress in satellite deployment and commercial partnerships. Unfavorable macroeconomic conditions, including rising inflation, higher interest rates, capital market volatility and geopolitical conflicts, have adversely impacted 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 JBL
With a presence across 100 locations in 30 countries, Jabil is likely to gain from secular growth drivers with strong margins and cash flow dynamics. Moreover, its unmatched end-market experience, technical and design capabilities, manufacturing know-how, supply-chain insights and global product management expertise have put it in good stead.
Management’s focus on improving working capital management and integrating sophisticated AI and ML capabilities to enhance the efficiency of its internal processes is a major tailwind. Jabil’s top line is expected to benefit from strength in AI data center infrastructure, capital equipment and warehouse automation markets. The company is likely to gain from the rapid adoption of 5G wireless and cloud computing in the long run. It is benefiting from solid demand in key end markets, together with excellent operational execution and skillful management of supply-chain dynamics.
However, Jabil operates in a highly competitive environment, facing competition from both domestic and international electronic manufacturers, manufacturing service providers and designers like Sanmina Corporation (SANM - Free Report) . The tense geopolitical situation between the United States and China, and the wars in Europe and the Middle East remain headwinds. Against the backdrop of this global uncertainty, low demand in some consumer-centric markets is negatively impacting its margins.
How Do Zacks Estimates Compare for ASTS & JBL?
The Zacks Consensus Estimate for AST SpaceMobile’s 2026 sales implies year-over-year growth of 129.2%, while that of EPS suggests a decline of 69.4%. The EPS estimates have been lowered 53.4% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JBL’s 2026 sales indicates year-over-year growth of 17.3%, while that for EPS suggests an improvement of 30.7%. The EPS estimates have remained stable at $12.74 over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of ASTS & JBL
Over the past year, AST SpaceMobile has gained 54.7% compared with the industry’s growth of 21.8%. JBL has surged 41.4% over the same period.
Image Source: Zacks Investment Research
JBL looks more attractive than AST SpaceMobile from a valuation standpoint. Going by the price/sales ratio, JBL’s shares currently trade at 0.75 forward sales, significantly lower than AST SpaceMobile’s 44.49.
Image Source: Zacks Investment Research
ASTS or JBL: Which is a Better Pick?
Both AST SpaceMobile and JBL 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 to improve in 2026. However, ASTS’ earnings are likely to decline significantly, while JBL’s bottom line is expected to witness modest growth. JBL has shown relatively steady revenue growth for years, while AST SpaceMobile has been facing a bumpy road. In terms of price performance, AST SpaceMobile has outperformed JBL but is trading at a premium compared to the latter. With improved estimate revisions, JBL is relatively better placed than AST SpaceMobile and seems to be a better investment option at the moment.