Better Space Stock to Buy Before 2026 Runs Out: SpaceX vs. Rocket Lab

The space economy has been all the rage with the initial public offering of Space Exploration Technologies (NASDAQ: SPCX), aka SpaceX, which was the largest IPO ever. The company entered public markets with a market capitalization of around $1.75 trillion, instantly making it one of the most valuable companies in the world.

SpaceX dominates launches, while competitor Rocket Lab (NASDAQ: RKLB) is carving out its own place in the space economy. For investors considering the growing space economy, read on to see which space stock is the better buy before the end of 2026.

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Comparing SpaceX's and Rocket Lab's launch businesses

McKinsey & Company estimates that the global space economy could reach $1.8 trillion by 2035. Driving this growth is innovation in the private sector, notably reusable launch systems and technological improvements that drastically lower the cost of launching infrastructure into space. This enables satellite developers to launch more satellites into space and capitalize on the growing demand for satellite data and connectivity.

SpaceX and Rocket Lab are top stocks for investors interested in the space economy, as they are the most widely used launch providers in the United States. Since the start of 2025, Rocket Lab has made 35 launches. Meanwhile, SpaceX has made a whopping 255 launches, illustrating its dominant position in the space launch industry.

Rocket Lab's Electron rocket is a small-lift launch vehicle that can carry payloads of around 300 kilograms (660 lbs) into low Earth orbit (LEO). This allows Rocket Lab to serve small- to medium-sized satellite customers, providing them with greater flexibility and control over the timeline while enabling them to precisely place these smaller satellites into orbit.

In contrast, SpaceX's Falcon 9 can carry massive payloads of 22,800 kg (50,000 lbs) into LEO. This rocket provides customers with a more cost-efficient option, as its large rocket can carry multiple payloads into space for different customers through its Smallsat Rideshare Program. SpaceX is also developing Starship, a super heavy-lift, fully reusable rocket capable of carrying 100,000 kg (220,000 lbs) into LEO.

To compete with SpaceX for larger launches, Rocket Lab has developed its medium-lift rocket, Neutron, which can carry payloads of 13,000 kg (28,600 lbs) into space. This rocket is smaller than the Falcon 9, but its larger payload will enable Rocket Lab to compete for more lucrative, higher-margin contracts and provide an alternative to SpaceX for government or commercial customers. The company hopes to launch Neutron by the end of this year.

Both have businesses outside of launch services

Beyond launch services, SpaceX and Rocket Lab both operate vertically integrated businesses that span the space economy. SpaceX has been building its own satellite constellation through Starlink, which provides high-speed broadband internet worldwide. Starlink boasts 12 million active subscribers worldwide and generates $11 billion in annual revenue. The company is also expanding its constellation to enhance satellite-to-phone connectivity, laying the groundwork for Starlink Mobile.

Rocket Lab operates a space systems business, providing hardware manufacturing, satellite design, and other services to space customers. The company builds components other companies need to make their satellites work, such as solar panels, star trackers, and flight software. Rocket Lab recently announced a deal to acquire Iridium Communications (NASDAQ: IRDM) for $8 billion, which would give it Iridium's constellation of 66 LEO satellites and help it further expand its vertically integrated space business.

Better buy: SpaceX or Rocket Lab?

SpaceX's revenue last year was $18.7 billion, dwarfing Rocket Lab's revenue of $602 million. SpaceX reported a net loss of $4.94 billion, compared with Rocket Lab's $198 million. Despite the revenue difference, both companies trade at hefty price-to-sales ratios: SpaceX at around 110x and Rocket Lab at 82x, suggesting investors are paying a steep premium in anticipation of strong future growth.

SpaceX has businesses outside of space, notably xAI and other technology businesses. A massive chunk of its $28.5 trillion total addressable market is anchored to artificial intelligence (AI), which accounts for $26.5 trillion of this figure. On the other hand, Rocket Lab is a more pure-play space company, with its business spanning the entire space ecosystem.

For investors seeking a play on future technologies, including space and AI, SpaceX could be the stock to go with. But if you want pure-play space exposure, Rocket Lab is a better buy. Just be warned: You'll pay a hefty premium if you buy either stock today, so size accordingly and ensure it's included in a well-diversified portfolio.

Courtney Carlsen has positions in Rocket Lab. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.