AST SpaceMobile (NASDAQ:ASTS – Get Free Report) and Telecom Italia (OTCMKTS:TIAOD – Get Free Report) are both communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.
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 |
Institutional and Insider Ownership
61.0% of AST SpaceMobile shares are held by institutional investors. Comparatively, 35.6% of Telecom Italia shares are held by institutional investors. 20.9% of AST SpaceMobile shares are held by 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.
Analyst Recommendations
| 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 target price of $87.60, suggesting a potential upside of 28.11%. Given AST SpaceMobile’s stronger consensus rating and higher probable upside, equities analysts plainly believe AST SpaceMobile is more favorable than Telecom Italia.
Earnings & Valuation
This table compares AST SpaceMobile and Telecom Italia”s 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.
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.
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