Choosing between AST SpaceMobile Inc (NASDAQ:ASTS) and First Majestic Silver Corp (NYSE:AG) presents a classic dilemma: Do you bet on a revolutionary satellite network or a steady producer of essential precious metals?
AST SpaceMobile aims to eliminate communication dead zones by connecting standard smartphones directly to satellites. First Majestic Silver focuses on extracting value from its Mexican mining operations and retail bullion sales. While they serve different markets, both offer unique exposure to infrastructure and commodity demand.
The case for AST SpaceMobile
AST SpaceMobile builds a space-based cellular broadband network designed to connect standard smartphones without special hardware or terrestrial towers. The company collaborates with nearly 60 mobile network operators, including AT&T Corp (NYSE:T) and Verizon Communications (NYSE:VZ) in the United States, to provide global coverage. Customer concentration like this adds a layer of risk to the business, though it also counts Vodafone Group (NASDAQ:VOD) and Saudi Telecom Co as strategic international partners who help it navigate local regulatory markets.
In FY 2025, revenue reached approximately $70.9 million, a substantial jump from the $4.4 million reported in the prior fiscal year. The company reported a net loss of nearly $342 million for the period. While revenue growth is accelerating as the company begins its commercial rollout, profitability remains a distant goal during this build-out phase.
The current debt-to-equity ratio is roughly 1.2x, showing the company relies more on debt than equity to fund its operations. Free cash flow, which is cash flow from operations minus capital expenditures, was more than negative $1.1 billion for FY 2025, as the firm invested heavily in its proprietary manufacturing and launch capabilities.
The case for First Majestic Silver
First Majestic Silver operates four producing underground mines in Mexico, focusing on the high-grade extraction of silver and gold for global markets. The company sells its output to industrial users and also offers silver bullion products directly to retail customers through its specialized online store and minting services. This vertical integration is a key part of its strategy among mining stocks, allowing it to bypass some middleman costs and capture higher prices for its physical metal.
In FY 2025, revenue reached more than $1.2 billion (converting from the Canadian dollars it reports in to U.S. at today’s exchange rate), an increase of about 128% compared to the prior year as production levels improved significantly across its portfolio. The company achieved a net income of approximately $161 million (again, converted from CAD to USD at today’s rate), indicating a return to profitability after weathering lower metal prices and operational shifts in previous periods. The net margin for the fiscal year was roughly 13%, showing the portion of revenue retained as profit after accounting for all mining, processing, and administrative costs.
The current debt-to-equity ratio is roughly 0.1x, which suggests a very low level of total debt relative to shareholder equity and a conservative capital structure. Free cash flow for FY 2025 was nearly $472 million (again, converted from CAD), representing the actual cash generated by the business after accounting for necessary capital investments in its Mexican mines and exploration activities.
Risk profile comparison
AST SpaceMobile faces significant risks related to its financial sustainability, as it has a history of net losses and requires substantial capital. Funding the satellite constellation often leads to shareholder dilution through offerings like its recent $1 billion convertible notes. Success also depends on the flawless launch and performance of the BlueBird satellites, while competition from well-capitalized rivals like Viasat Inc (NASDAQ:VSAT) remains a major threat to its market share goals.
For First Majestic Silver, mining operations carry inherent risks, including the volatility of silver and gold prices, which directly impacts the bottom line. Since all production is currently located in Mexico, the company is exposed to potential changes in local mining laws or tax regulations. Operational challenges like equipment failure or labor disputes can also disrupt production schedules at its primary mines, making future earnings estimates harder to predict for short-term investors.
Valuation comparison
First Majestic Silver appears significantly cheaper based on traditional multiples and future earnings estimates, while AST SpaceMobile carries a premium valuation reflecting its high growth potential. It does not have a forward price-to-earnings ratio because it is not expected to make a profit in the coming fiscal year.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
AST SpaceMobile expects its space-based network to give it a significant business in a few years. Essentially, AST SpaceMobile is a direct-to-device play to provide full mobile phone compatibility for major carriers without the need for specialized equipment. Many of its potential clients are also equity holders in the company, including AT&T, Verizon, Bell Canada, Rakuten, Vodafone, Alphabet Inc(NASDAQ:GOOG), American Tower (NYSE:AMT), and Telus (NYSE:TU) .
By the end of 2026, the company should have 45 satellites, which will allow it to fully service the U.S., and that should start to supercharge revenue growth. For fiscal 2026, Wall Street sees $149 million in sales, jumping to $725 million the following year, when the company is projected to turn its first modest profit. Free cash flow appears much more manageable, with analysts expecting positive free cash flow in 2029.
First Majestic, meanwhile, is benefitting from silver’s red-hot rally in recent years. Silver has nearly tripled since the start of 2025, partly in tandem with gold and partly due to industrial demand from renewable energy applications. Mining stocks correlate very closely with the price of silver, which is why First Majestic’s share price quadrupled from mid 2025 through February this year.
What’s good about silver miner stocks is that they disproportionately make profits as the price rises, given they have a fixed cost of production that doesn’t rise nearly as fast. That means that even if silver prices actually decline somewhat, miners will still be booking big profits. Ultimately, their stock prices will trace silver downward, too, but it’s a less volatile way to play silver’s price.
This year, First Majestic’s sales should rise more than 40% as it sells its increased production into the market, and the company has kicked up its dividend to $0.06 per share, according to Morningstar, up 20% from last year.
First Majestic is a tempting stock, but ultimately one that plays in the boom-and-bust commodity sector. AST Spacemobile faces plenty of challenges in becoming a truly global network provider, but it promises growth-stock characteristics for years to come.
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile, Alphabet, and American Tower. The Motley Fool recommends TELUS, Verizon Communications, and Vodafone Group Public. The Motley Fool has a disclosure policy.
AST SpaceMobile vs. First Majestic Silver: Which Industrials Stock Is a Better Buy in 2026? was originally published by The Motley Fool