SpaceX vs. Rocket Lab: Which Is the Better Space Stock to Buy Right Now?
2026-07-16 10:15
•Chris Neiger •The Motley Fool
•••••••• •••••••• Axe Capital view
Rocket Lab Edges Out SpaceX as Better Play for Now
Rocket Lab’s faster revenue growth and improving losses make it a stronger bet than SpaceX despite the latter’s ambitious vision.
SpaceX grabs headlines with Mars dreams and its Starlink internet network, but its financials are looking increasingly stretched. Q1’s $10 billion capital spend and widening losses don’t sit well with investors, especially given a sky-high price-to-sales ratio near 94. Rocket Lab, on the other hand, runs a tighter ship: 64% revenue growth this year, improving losses, and valued more reasonably at 66 times sales. Its government contracts and recent acquisition of Iridium diversify revenue and show operational traction. For South Africans watching USD/ZAR, Rocket Lab’s wins in high-tech aerospace could support risk appetite and harden the currency, indirectly benefiting our growth-focused banks and industrials. Still, SpaceX’s potential breakthroughs or explosive new contracts could swing sentiment quickly. For now, Rocket Lab offers a cleaner story with better near-term traction in a volatile sector. this is just my opinion and not financial advice
Keep a small position in Rocket Lab via global exposure funds or USD trades, avoid jumping into SpaceX given its cash burn and uncertainty. Watch USD/ZAR for risk shifts tied to tech sector flows.
- RKLB
- SPCX
- USD/ZAR
- SpaceX secures game-changing contracts or breakthrough tech
- Global risk-off hits USD/ZAR hurting local sentiment
6/10
The article compares SpaceX and Rocket Lab as space investment opportunities. While SpaceX pursues ambitious goals including Mars colonization, AI platforms, and Starlink expansion, it faces mounting losses ($3.29 per share in Q1) and massive capital expenditures ($10 billion in Q1 alone). Rocket Lab, though unprofitable, shows stronger momentum with 64% revenue growth, 31 new launch contracts signed in Q1, and improving losses. The article concludes Rocket Lab is the better buy due to its lower valuation (P/S ratio of 66 vs. SpaceX's 94) and stronger operational trajectory.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Chris Neiger
Categories: Equities, Earnings, M&A, Technology, AI, Semiconductors, Financials, Autos
Tickers: SPCX, RKLB, GOOG, GOOGL, GOOGM, GOOGN, TSLA, IRDM
Sentiment: Mixed - Despite ambitious projects (Mars colonization, Starlink, AI platforms), SpaceX faces deteriorating financial metrics: Q1 losses of $3.29 per share (vs. $0.41 prior year), accelerating capital expenditures ($10 billion in Q1), and slowing revenue growth (15% vs. Rocket Lab's 64%). High valuation (P/S ratio of 94) compounds concerns. Rocket Lab demonstrates strong operational momentum with 64% revenue growth, record Q1 signing of 31 launch contracts, improving losses ($0.07 per share vs. $0.12 prior year), and major government contracts (Golden Dome missile defense system). Lower valuation (P/S ratio of 66) and Iridium acquisition ($8 billion) position it favorably against SpaceX.
Keywords: space stocks, rocket launches, satellite internet, capital expenditures, revenue growth, valuation, military contracts
Insights:
- SPCX: Negative: Despite ambitious projects (Mars colonization, Starlink, AI platforms), SpaceX faces deteriorating financial metrics: Q1 losses of $3.29 per share (vs. $0.41 prior year), accelerating capital expenditures ($10 billion in Q1), and slowing revenue growth (15% vs. Rocket Lab's 64%). High valuation (P/S ratio of 94) compounds concerns.
- RKLB: Positive: Rocket Lab demonstrates strong operational momentum with 64% revenue growth, record Q1 signing of 31 launch contracts, improving losses ($0.07 per share vs. $0.12 prior year), and major government contracts (Golden Dome missile defense system). Lower valuation (P/S ratio of 66) and Iridium acquisition ($8 billion) position it favorably against SpaceX.
- GOOG: Neutral: Mentioned as a customer of SpaceX's neocloud data center business; no direct investment thesis or performance data provided.