Two very different space-focused companies are competing for investor attention, with one offering explosive growth and the other delivering steady, profitable performance.
AST SpaceMobile (ASTS) has seen its share price pull back significantly, prompting investors to ask whether the satellite communications company is now undervalued compared to defense giant L3Harris Technologies (LHX).
AST SpaceMobile has developed a direct-to-cell architecture that sets it apart from traditional satellite communications providers like Starlink, which require external ground hardware such as dishes or satellite phones.
Instead of relying on ground-based hardware, AST SpaceMobile’s system functions as a network of space-based cell towers that connect directly to standard mobile phones without any special equipment.
The company is in the process of building and launching a global satellite constellation, an undertaking that requires billions of dollars in up-front capital investment.
AST SpaceMobile continues to post multi-hundred-million-dollar annual net losses and negative free cash flow, relying heavily on convertible debt and secondary stock offerings to fund its operations.
That fundraising approach poses a continuous risk of equity dilution for existing shareholders, adding a layer of financial uncertainty on top of the company’s already demanding operational challenges.
The company has pushed back the planned launch of its satellite phone service from late 2026 to 2027, a delay that compounds growing competition in an increasingly crowded direct-to-cell market.
L3Harris Technologies (LHX), by contrast, is an established and consistently profitable defense company that benefits from sustained growth across the broader space industry.
In the second quarter, L3Harris reported revenue of $7.3 billion, representing an 8% increase year over year, alongside earnings per share of $3.13, which was up 28% compared to the same period a year ago.
The company’s backlog currently stands at $42 billion, a figure that dwarfs anything AST SpaceMobile can point to at this stage of its development.
L3Harris also raised its full-year guidance, projecting 2026 revenue of between $23.2 billion and $23.7 billion, reflecting approximately 7% growth at the midpoint of that range.
The company’s full-year earnings per share estimate was set between $11.80 and $12, representing a striking 39.5% increase at the midpoint compared to the prior year.
One key risk facing L3Harris involves its reliance on fixed-price defense contracts, meaning cost overruns tied to inflation, supply chain issues, or production complexity must be absorbed by the company rather than the government.
For investors weighing the two, AST SpaceMobile offers triple-digit revenue growth potential but significant execution risk, while L3Harris delivers measured, reliable growth backed by a massive order book.
