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Clamoring to Invest in SpaceX but Can't? Consider Buying Stock in This Competitor That Just Upped Its National Defense Game.
RKLBRocket Lab USA(RKLB) The Motley Fool·2025-06-07 17:16

Core Insights - SpaceX is valued at 350billion,makingitthemostvaluableprivatelyheldcompany,butitssharesarenotavailableforpublicpurchase[1]−RocketLabispresentedasaviablealternativeforinvestorsinterestedinthespacesector,asitoperatesinasimilarniche[2]Group1:RocketLab′sPositionintheMarket−RocketLabistheonlyothercompanybesidesSpaceXthatcanreliablylaunchrocketsatscale,withitsElectronprogramconsistentlylaunchingeveryquarter[3]−Thecompanyhassecuredcontractsfornationaldefensesystems,includingHASTE,whichtestshypersonicdefensecapabilities,indicatingagrowingmarketforgovernmentcontracts[4]−RocketLab′sacquisitionofGeostfor350 billion, making it the most valuable privately held company, but its shares are not available for public purchase [1] - Rocket Lab is presented as a viable alternative for investors interested in the space sector, as it operates in a similar niche [2] Group 1: Rocket Lab's Position in the Market - Rocket Lab is the only other company besides SpaceX that can reliably launch rockets at scale, with its Electron program consistently launching every quarter [3] - The company has secured contracts for national defense systems, including HASTE, which tests hypersonic defense capabilities, indicating a growing market for government contracts [4] - Rocket Lab's acquisition of Geost for 275 million positions it to capitalize on lucrative government contracts related to national defense [5] Group 2: Future Growth Potential - Rocket Lab is developing the Neutron rocket, which aims to compete directly with SpaceX's Falcon 9, with commercial launches expected next year [8] - The Neutron rocket could significantly boost Rocket Lab's business, with a proposed contract for two missions in 2026 and participation in the U.S. National Security Space Launch program, which has a budget of 5.6billionthrough2029[9][10]−RocketLab′sbacklogcurrentlyexceeds5.6 billion through 2029 [9][10] - Rocket Lab's backlog currently exceeds 1 billion, and successful launches of the Neutron could lead to substantial growth in this backlog over the next decade [11] Group 3: Financial Metrics - SpaceX has a price-to-sales (P/S) ratio of approximately 27, while Rocket Lab's P/S ratio is slightly higher at 28.5, reflecting its recent stock price increase [12] - Despite the potential for revenue growth, Rocket Lab has never made a profit, making its current valuation appear expensive and risky [14]