Planet Labs vs. Snowflake: Evaluating the Better High-Growth Stock to Buy for 2026

As businesses rely on specialized data for decision-making, choosing between satellite imagery and cloud analytics is a tough call. Is Planet Labs PBC (NYSE:PL) or Snowflake (NYSE:SNOW) the better buy today?

Planet Labs provides high-frequency satellite imagery, capturing the entire Earth every day. Snowflake operates a cloud data platform that lets companies store and analyze massive datasets. While they serve different niches, both companies represent high-growth plays on the modern data economy, making them frequent targets for investors seeking exposure to tech-driven disruption.

The case for Planet Labs PBC

Planet Labs operates a fleet of approximately 200 satellites to provide daily Earth-imaging data and analytics. It serves a diverse customer base including agriculture, energy, and forestry, and its latest annual report mentions recent contracts with NATO and the government of Sweden. High revenue concentration with a small number of customers adds a layer of risk to the business since a single departure could significantly impact the top line.

In its 2026 fiscal year (FY), revenue reached $307.7 million, representing a growth rate of 25.9% compared to the previous year. However, the company reported a net loss of $246.9 million for the period. This net margin, which measures the percentage of revenue left as profit after all expenses, stood at negative 80.2%, compared to negative 50.4% in the prior year.

As of its January 2026 balance sheet, the current ratio, which compares short-term assets to short-term liabilities, is 1.7x. The debt-to-equity ratio, measuring total debt against shareholder equity, stands at 2.5x. Note that stock-based compensation (SBC) represented 40.9% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

The case for Snowflake

Snowflake provides an AI Data Cloud platform used for data engineering, analytics, AI, and secure data sharing. The company operates a consumption-based model, serving 790 of the Forbes Global 2000 as of its latest annual report for the year ended Jan. 31, 2026. This platform is essential for organizations to manage data pipelines across various cloud environments.

In FY 2026, revenue reached $4.7 billion, a growth of 29.2% over the previous fiscal year. Despite this increase, the company reported a net loss of $1.3 billion. This resulted in a net margin of negative 28.4% for the fiscal year, though this was an improvement from the negative 35.5% margin reported in FY 2025.

According to its January balance sheet, the current ratio stands at 1.3x. The debt-to-equity ratio is 1.4x. Note that stock-based compensation represented 130.9% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.

Risk profile comparison

Planet Labs faces significant operational risks involving satellite manufacturing and potential launch failures. The company also manages regulatory risks due to the geopolitical sensitivity of geospatial data, which can limit where and how it sells its imagery.

Snowflake is dependent on public cloud infrastructure providers such as Amazon and Microsoft, which are also its primary competitors in the data space. The company faces litigation risks, including securities fraud class action lawsuits and concerns regarding unauthorized customer account access. Furthermore, the consumption-based revenue model can make it difficult to accurately forecast future financial results during periods of economic uncertainty.

Valuation comparison

Both companies command high P/S ratio figures, which compare market value to annual revenue, but Planet Labs appears slightly more affordable. It does not have a Forward P/E ratio, which measure a stock price against future earnings estimates, since it is not expected to make a profit any time soon.

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Planet Labs and Snowflake both released impressive earnings reports in recent days. Planet Labs announced record revenue of $116.1 million, representing 58% year-over-year growth in its fiscal second quarter ended July 31.

Over the same time period, Snowflake reported revenue of $1.6 billion, which was 35% year-over-year growth. The data giant is benefiting from the artificial intelligence boom, as its AI products experienced robust customer adoption, and its consumption-based pricing model means the more clients use its AI, the greater Snowflake sales will grow.

Its success in the rapidly expanding AI sector would make Snowflake the better stock to buy in 2026. However, after delivering an outstanding fiscal Q2, its stock price soared to a 52-week high of $384.56 on Sept. 3, causing its valuation to rise.

Now, Planet Labs boasts the better valuation, and with its remaining performance obligations totaling $753.1 million in fiscal Q2, its sales are poised to continue seeing strong sales growth. Consequently, I would buy Planet Labs stock right now.

Robert Izquierdo has positions in Amazon, Microsoft, Planet Labs PBC, and Snowflake. The Motley Fool has positions in and recommends Amazon, Microsoft, Planet Labs PBC, and Snowflake. The Motley Fool has a disclosure policy.