Contrasting AST SpaceMobile (NASDAQ:ASTS) and America Movil (NYSE:AMX)

America Movil (NYSE:AMX) and AST SpaceMobile (NASDAQ:ASTS) are both large-cap communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Institutional and Insider Ownership

6.3% of America Movil shares are held by institutional investors. Comparatively, 61.0% of AST SpaceMobile shares are held by institutional investors. 1.0% of America Movil 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 will outperform the market over the long term.

Volatility and Risk

America Movil has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, AST SpaceMobile has a beta of 2.74, meaning that its share price is 174% more volatile than the S&P 500.

Profitability

This table compares America Movil and AST SpaceMobile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
America Movil	9.38%	20.33%	4.93%
AST SpaceMobile	-536.66%	-22.88%	-10.67%

Analyst Ratings

This is a breakdown of current ratings for America Movil and AST SpaceMobile, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
America Movil	0	4	4	1	2.67
AST SpaceMobile	2	5	6	0	2.31

America Movil currently has a consensus price target of $29.52, suggesting a potential upside of 42.42%. AST SpaceMobile has a consensus price target of $86.58, suggesting a potential upside of 52.04%. Given AST SpaceMobile’s higher probable upside, analysts plainly believe AST SpaceMobile is more favorable than America Movil.

Valuation & Earnings

This table compares America Movil and AST SpaceMobile”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
America Movil	$49.22 billion	1.27	$4.61 billion	$1.66	12.48
AST SpaceMobile	$70.92 million	312.49	-$341.94 million	($2.14)	-26.61

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

Summary

America Movil beats AST SpaceMobile on 9 of the 15 factors compared between the two stocks.

About America Movil

América Móvil, S.A.B. de C.V. provides telecommunications services in Latin America and internationally. The company offers wireless and fixed voice services, including airtime, local, domestic, and international long-distance services; and network interconnection services. It provides data services, such as data centers, data administration, and hosting services to residential and corporate clients; value-added services, including Internet access, messaging and other wireless entertainment, and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network services, and video calls and personal communications services. In addition, the company offers residential broadband services; IT solutions to small businesses and large corporations; and cable and satellite television subscriptions. Further, it sells equipment, accessories, and computers; and offers telephone directories, wireless security, call center, advertising, media, and software development services. Additionally, the company provides video, audio, and other media content through the Internet directly from the content provider to the end user. It sells its products and services under the Telcel, Telmex Infinitum, and A1 brands through a network of retailers and service centers to retail customers; and through sales force to corporate customers. The company was incorporated in 2000 and is based in Mexico City, Mexico.

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.