Maxcom Telecomunicaciones (OTCMKTS:MXMTY) vs. AST SpaceMobile (NASDAQ:ASTS) Critical Review

Maxcom Telecomunicaciones (OTCMKTS:MXMTY) and AST SpaceMobile (NASDAQ:ASTS) are both communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Maxcom Telecomunicaciones has a beta of -6.69, suggesting that its share price is 769% less volatile than the S&P 500. Comparatively, AST SpaceMobile has a beta of 2.75, suggesting that its share price is 175% more volatile than the S&P 500.

Valuation & Earnings

This table compares Maxcom Telecomunicaciones and AST SpaceMobile”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Maxcom Telecomunicaciones	$42.56 million	0.29	-$24.46 million	N/A	N/A
AST SpaceMobile	$70.92 million	393.70	-$341.94 million	($1.78)	-40.42

Maxcom Telecomunicaciones has higher earnings, but lower revenue than AST SpaceMobile.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Maxcom Telecomunicaciones	-34.92%	-37.49%	-9.86%
AST SpaceMobile	-573.67%	-24.87%	-12.58%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Maxcom Telecomunicaciones and AST SpaceMobile, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maxcom Telecomunicaciones	0	0	0	0	0.00
AST SpaceMobile	2	6	2	1	2.18

AST SpaceMobile has a consensus target price of $87.60, suggesting a potential upside of 21.77%. Given AST SpaceMobile’s stronger consensus rating and higher possible upside, analysts plainly believe AST SpaceMobile is more favorable than Maxcom Telecomunicaciones.

Institutional and Insider Ownership

61.0% of AST SpaceMobile shares are held by institutional investors. 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.

Summary

AST SpaceMobile beats Maxcom Telecomunicaciones on 10 of the 14 factors compared between the two stocks.

About Maxcom Telecomunicaciones

Maxcom Telecomunicaciones SA de CV operates as an integrated telecommunication service operating company. The firm provides widespread voice and data services to residential and small and medium sized business customers in metropolitan markets in Mexico. It also offers local and long-distance voice, data, dedicated, and dial-up Internet access, public telephony, voice over Internet Protocol telephony, and paid television. The company was founded on February 28, 1996 and is headquartered 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.