AST SpaceMobile vs. Rocket Lab: Which Space-Based Network Stock Is a Better Buy in 2026?
2026-07-31 20:28
•Brendan Coffey •The Motley Fool
••• •••••••••••••• Axe Cap view
Rocket Lab Edges Ahead of AST SpaceMobile for 2026
Between two space-based network plays, Rocket Lab’s stronger balance sheet and strategic acquisition set it apart.
AST SpaceMobile is promising with its goal of a cellular network accessible to ordinary smartphones from orbit. That’s a big vision, and they’ve moved fast—16 times revenue growth year-on-year to $70.9 million is impressive. But the firm’s cash burn and debt levels are red flags—burning over a billion dollars in free cash flow and valued at 188 times sales feels like hype outpacing fundamentals. Rocket Lab, meanwhile, offers a more tangible story. Its recent acquisition of Iridium Communications broadens its bandwidth and satellite reach, gearing it up as a credible SpaceX competitor. The valuation is 52.9 times sales, less ambitious but more grounded. For South African investors, a weaker dollar versus the rand (USD/ZAR) could make Rocket Lab shares more attractive locally. Still, the space sector is volatile, and new tech surprises can quickly reshape the field. If AST can execute and cut cash burn, it may surprise. But for now, Rocket Lab’s blend of diversified revenue, lower debt, and clearer path to breakeven in 2026 wins the day. this is just our opinion and not financial advice
Look to buy Rocket Lab cautiously, watching for its integration success with Iridium. Avoid AST SpaceMobile for now given its steep cash burn and valuation. Keep an eye on USD/ZAR trends as a soft rand can improve Rocket Lab’s local cost base.
- RKLB
- ASTS
- USD/ZAR
- AST SpaceMobile fails to reach profitability by 2027
- Rocket Lab faces stiff competition from better-funded players like SpaceX and Amazon
7/10
The article compares two space-focused companies: AST SpaceMobile, which is building a space-based cellular network for standard smartphones, and Rocket Lab, a vertically integrated launch services provider acquiring Iridium Communications. Both are unprofitable and burning cash, but Rocket Lab is recommended as the better buy in 2026 due to its lower valuation (52.9x P/S vs. 188x), stronger balance sheet, and the strategic Iridium acquisition that could position it as a serious SpaceX competitor.
Our take is based on reporting first published by The Motley Fool.