Better Space Stock: Rocket Lab vs. Firefly Aerospace
Key Points
Space stocks are hot commodities at the moment with the upcoming SpaceX IPO.
Rocket Lab and Firefly Aerospace are both vying to send commercial payloads into orbit.
It is clear which one is the better buy if you look at the underlying business performance.
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Space is back in the lexicon. The United States just sent a mission back to orbit the Moon for the first time in decades, and SpaceX is rapidly approaching an initial public offering (IPO) that may be the largest in history. Investors are excited about the space economy and what it can bring to the future of civilization, as well as to their portfolios.
Two publicly traded space flight companies you can buy right now are Rocket Lab (NASDAQ: RKLB) and Firefly Aerospace (NASDAQ: FLY). Both have successfully launched rockets into orbit and have ambitions to become contractors for the space economy, both commercially and for defense projects. But which stock is the better buy today?
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Rocket Lab's lead
Rocket Lab was started by a whipsmart New Zealander named Peter Beck. It is the furthest along in commercial rocket launches after SpaceX, having launched its small Electron rocket 21 times in 2025 alone. There is a lot of momentum with its launch business, signing over 30 new launches last year for the Electron. In the future, it hopes to deploy its larger Neutron rocket that will directly compete with SpaceX for launches.
In addition to launches, Rocket Lab has built a division that sells space equipment, systems, and services to its launch customers. This has grown into a $403 million revenue business last year, which is actually larger than its launch revenue of $199 million.
The future looks bright for Rocket Lab, and it should have plenty of demand for its launch services in the years ahead. The only question is when it will become profitable. Net loss was $200 million last year.
Firefly's grand ambitions
Firefly is behind Rocket Lab in commercialization, but is nipping at its heels. It went public last year, raising $868 million to further its ambitions to become a leader in space flight and the space defense business.
Launching its Alpha rocket has been a fit-and-start affair, but it successfully launched in April, which will hopefully lead to more revenue from commercial customers in the near future. It works more in the space systems segment today, with a highlight from the year being its lunar lander mission, the first commercial company to make this venture, in partnership with NASA.
Revenue at Firefly is smaller than Rocket Lab, at $160 million in 2025. However, it is actually losing more money, with a net loss of almost $300 million. Hopefully, this figure can improve in the years ahead.
Which is the better buy?
With a better track record in launching payloads for commercial customers, Rocket Lab looks like a better business than Firefly Aerospace right now. It does trade at a higher price-to-sales ratio (P/S) -- 60 for Rocket Lab vs. 32 for Firefly -- but that won't matter as much if you have a time horizon longer than a year with your investment.
Neither of the stocks looks cheap today. However, if I were forced to choose one to buy, it would be Rocket Lab in a heartbeat.
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Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.
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