Rocket Lab vs. SpaceX: Which Stock is the Better Aerospace Buy?

SpaceX is dominating the headlines. That's understandable, considering that Elon Musk's company plans to conduct an initial public offering (IPO) soon with a valuation of around $1.75 trillion.

But is Rocket Lab (NASDAQ: RKLB) the space stock that investors should really be watching? Rocket Lab's share price has soared close to 80% year to date.

Investors should soon have an opportunity to scoop up shares of SpaceX, while they can initiate a position in Rocket Lab now. Which stock is the better aerospace buy?

Image source: Getty Images.

The case for Rocket Lab

When a company is named Rocket Lab, it stands to reason that much of its business will be built around... rockets. Rocket Lab's Electron rocket has been launched more frequently than any other small rocket. The company also uses its HASTE rocket to provide hypersonic test launches for the U.S. government and its allies.

However, Rocket Lab does more than just launch rockets. The company's spacecraft and satellite components generated 68% of revenue in the first quarter of 2026. Its non-rocket technology has been used in more than 1,700 commercial, defense, and national security missions.

Rocket Lab's revenue jumped 63.5% year over year in Q1 to $200.3 million. Its record backlog in Q1 totaled $2.2 billion, up 20.2% quarter over quarter. To put Rocket Lab's growth in perspective: The company sold more launches in Q1 than it did in all of 2025.

The future for this aerospace innovator could be even brighter than its past. Rocket Lab recently completed the acquisition of Mynaric AG, a maker of laser optical communications terminals. Its Neutron rocket, under development, should expand opportunities in the medium-lift market. The company was also selected, in partnership with defense giant RTX (NYSE: RTX) (formerly Raytheon), to provide launch and satellite capabilities for President Trump's Golden Dome for America program.

The case for SpaceX

We could probably sum up the primary case for investing in SpaceX after its IPO in one word: dominance. The company is the world's leading launch service provider. Its reusable Falcon 9 rocket has completed 635 missions so far.

SpaceX is also the top dog in the satellite internet service market. The company's Starlink unit has over 10,300 satellites in orbit. It serves over 10 million customers and expects the number to reach 18 million by the end of 2026.

Musk's company generated around $18.5 billion in revenue last year, according to The Information. That figure seems likely to grow significantly through the rest of the decade and beyond.

SpaceX also has tremendous optionality. Its Starship reusable spacecraft can carry up to 100 people on interplanetary flights. Establishing bases on the moon and Mars could create massive commercial opportunities for SpaceX. The company's xAI unit, which developed the Grok AI model, holds the potential to be a growth driver.

Better aerospace buy?

If you want to invest immediately, Rocket Lab is the better pick since SpaceX hasn't listed its shares on a stock exchange yet. However, if you're willing to wait, SpaceX is arguably the better long-term pick. Keep in mind, though, that both Rocket Lab and SpaceX are high-risk, potentially high-reward propositions.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends RTX and Rocket Lab. The Motley Fool has a disclosure policy.