Head to Head Contrast: Telecom Argentina Stet – France Telecom (NYSE:TEO) & AST SpaceMobile (NASDAQ:ASTS)

Telecom Argentina Stet – France Telecom (NYSE:TEO) and AST SpaceMobile (NASDAQ:ASTS) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Institutional & Insider Ownership

61.0% of AST SpaceMobile shares are held by institutional investors. 1.0% of Telecom Argentina Stet – France Telecom shares are held by company insiders. Comparatively, 20.9% of AST SpaceMobile shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Telecom Argentina Stet – France Telecom and AST SpaceMobile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Telecom Argentina Stet – France Telecom	7.61%	9.38%	4.11%
AST SpaceMobile	-536.66%	-22.88%	-10.67%

Earnings and Valuation

This table compares Telecom Argentina Stet – France Telecom and AST SpaceMobile”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Telecom Argentina Stet – France Telecom	$6.81 billion	0.78	-$136.01 million	$1.23	10.07
AST SpaceMobile	$70.92 million	279.70	-$341.94 million	($2.14)	-23.82

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Telecom Argentina Stet – France Telecom and AST SpaceMobile, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Telecom Argentina Stet – France Telecom	1	2	3	0	2.33
AST SpaceMobile	2	7	5	0	2.21

Telecom Argentina Stet – France Telecom currently has a consensus price target of $15.93, indicating a potential upside of 28.58%. AST SpaceMobile has a consensus price target of $84.58, indicating a potential upside of 65.94%. Given AST SpaceMobile’s higher possible upside, analysts plainly believe AST SpaceMobile is more favorable than Telecom Argentina Stet – France Telecom.

Volatility and Risk

Telecom Argentina Stet – France Telecom has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, AST SpaceMobile has a beta of 2.72, suggesting that its stock price is 172% more volatile than the S&P 500.

Summary

Telecom Argentina Stet – France Telecom beats AST SpaceMobile on 8 of the 14 factors compared between the two stocks.

About Telecom Argentina Stet – France Telecom

Telecom Argentina S.A., together with its subsidiaries, provides telecommunications services. The company offers mobile telecommunications services, including voice communications, high-speed mobile Internet content and applications download, online streaming, and other services; and sells mobile communication devices, such as handsets, Modems MiFi and wingles, and smart watches. It also internet connectivity products, including virtual private network services, traditional Internet protocol links, and other products; and programming and other cable television services. In addition, the company offers telephone services, including local, domestic, and international long-distance telephone services, as well as public telephone services; and other related supplementary services, such as call waiting, call forwarding, conference calls, caller ID, voice mail, itemized billing, and maintenance services. Further, it provides Infrastructure, interconnection, datacenter, Internet, value added, and international long-distance services; and data services, including data transmission, virtual private networks, symmetric Internet access, national and international signal transport, and videoconferencing services; Personal Pay, a digital wallet service; and management and administration services. The company was formerly known as Cablevisión S.A. and changed its name to Telecom Argentina S.A. in January 2018. Telecom Argentina S.A. was founded in 1979 and is based in Buenos Aires, Argentina.

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.