Contrasting AST SpaceMobile (NASDAQ:ASTS) and Uniti Group (NASDAQ:UNIT)
by Michael Walen · The Markets DailyUniti Group (NASDAQ:UNIT – Get Free Report) and AST SpaceMobile (NASDAQ:ASTS – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
87.5% of Uniti Group shares are owned by institutional investors. Comparatively, 61.0% of AST SpaceMobile shares are owned by institutional investors. 1.9% of Uniti Group shares are owned by insiders. Comparatively, 20.9% of AST SpaceMobile shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Uniti Group and AST SpaceMobile’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Uniti Group | 28.68% | -133.07% | -4.09% |
| AST SpaceMobile | -536.66% | -22.88% | -10.67% |
Analyst Ratings
This is a summary of recent ratings and price targets for Uniti Group and AST SpaceMobile, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Uniti Group | 0 | 7 | 1 | 1 | 2.33 |
| AST SpaceMobile | 2 | 5 | 6 | 0 | 2.31 |
Uniti Group presently has a consensus target price of $10.92, suggesting a potential upside of 26.20%. AST SpaceMobile has a consensus target price of $86.58, suggesting a potential upside of 41.93%. Given AST SpaceMobile’s higher possible upside, analysts plainly believe AST SpaceMobile is more favorable than Uniti Group.
Valuation & Earnings
This table compares Uniti Group and AST SpaceMobile”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Uniti Group | $2.23 billion | 0.94 | $1.30 billion | $2.71 | 3.19 |
| AST SpaceMobile | $70.92 million | 334.73 | -$341.94 million | ($2.14) | -28.50 |
Uniti Group has higher revenue and earnings than AST SpaceMobile. AST SpaceMobile is trading at a lower price-to-earnings ratio than Uniti Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Uniti Group has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, AST SpaceMobile has a beta of 2.74, indicating that its stock price is 174% more volatile than the S&P 500.
Summary
Uniti Group beats AST SpaceMobile on 9 of the 15 factors compared between the two stocks.
About Uniti Group
Uniti Group, Inc. is a real estate investment trust company, which engages in the acquisition, construction, and leasing of properties. It operates through the following business segments: Uniti Leasing, Uniti Fiber, and Corporate. The Uniti Leasing segment involves mission-critical communications assets on exclusive or shared-tenant basis, and dark fiber network. The Uniti Fiber segment includes the operation of infrastructure solutions, cell site backhauls, and dark fiber. The Corporate segment consists of office and shared service functions. The company was founded in February 2014 and is headquartered in Little Rock, AR.
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.