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RKLB vs. SPCE: Which Space Stock is the Smarter Player?
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Key Takeaways
Rocket Lab's 15th launch, JAXA contract and Photon project boost its global space standing.
Virgin Galactic's Purdue partnership expands into research flights, diversifying beyond tourism.
RKLB outperformed SPCE over the past year, supported by solid cash and lower leverage levels.
As investors turn their attention to the growing space industry and national security needs, their interest in companies like Rocket Lab Corp. (RKLB - Free Report) and Virgin Galactic Holdings, Inc. (SPCE - Free Report) is increasing. Both operate in distinct areas of the space market but are key players in its expansion.
Rocket Lab provides launch services and builds space systems, focusing on small satellite launches through its Electron rocket. In contrast, Virgin Galactic is an aerospace and space travel company developing, manufacturing and operating spaceships that enable private individuals, researchers and government agencies to access space. The company’s missions include flying passengers and scientific payloads to suborbital space to support both commercial and research objectives.
Recently, investor interest in these stocks has grown due to higher defense spending, rising demand for satellite infrastructure and the expansion of commercial space activities. The growing focus on innovation in reusable launch vehicles and space tourism has also supported this trend.
With both RKLB and SPCE showing strong potential, investors may find it difficult to choose between them. Let’s take a closer look to see which one stands out as the smarter pick in the evolving space market.
Key Takeaways for RKLB
Recent Achievements: In October 2025, Rocket Lab achieved several important milestones that strengthened its position in the global space industry. The company successfully completed its 15th launch of the year and began a new series of 21 launches for Synspective.
Rocket Lab also cleared the Systems Integration Review (SIR) and finished building its Photon spacecraft for Eta Space and NASA’s LOXSAT mission. This project will test new cryogenic fuel storage technology in orbit, supporting plans to build a full-scale propellant depot by 2030.
Additionally, the company signed a direct contract with the Japan Aerospace Exploration Agency (“JAXA”) for two dedicated Electron launches, showing the growing trust of international agencies in Rocket Lab’s launch reliability. It also signed a new multi-launch deal with Japan’s iQPS, becoming the main launch provider for its commercial Earth-imaging satellite constellation.
Financial Stability: Rocket Lab ended the second quarter with a cash and cash equivalent of $688 million. Its current debt was $17 million, while its long-term debt totaled $415 million. This indicates that the company maintains a solid solvency position, enabling it to keep investing in innovative space technologies and supporting the manufacturing of components, sub-systems and assemblies across its full range of launch vehicles and spacecraft.
Challenges to Note: Rocket Lab faces notable risk in the form of high operating expenses, due to heavy investments in the development of next-generation technologies such as the Neutron rocket, satellite platforms and other advanced space systems. While these investments strengthen its long-term outlook, the rising costs have outpaced revenue growth in recent quarters, resulting in continued losses that could persist in the short run.
Key Takeaways for SPCE
Recent Achievements: In September 2025, Virgin Galactic announced a collaboration with Purdue University for a suborbital spaceflight named Purdue 1, which is planned for 2027. The mission will include a team of Purdue faculty, students and alumni who will conduct microgravity experiments on fluid behavior. This research is important for improving spacecraft design, fuel management and future long-duration missions. The partnership highlights Virgin Galactic’s growing efforts to support scientific research in addition to space tourism.
Financial Stability: SPCE ended the second quarter of 2025 with cash and cash equivalents of $500 million. Its long-term debt, as of June 30, 2025, was $421 million, while it had no notable current debt at the end of the second quarter of 2025. So, we may safely conclude that the company holds a solid solvency position, which should enable it to continue investing in the development of innovative space-based products.
Challenges to Note: Despite strong growth potential, SPCE faces several industry-specific risks. Ongoing supply-chain disruptions and the rising costs of raw materials could impact the company’s ability to deliver products and services on schedule while maintaining healthy margins. Persistent inflation and higher labor expenses may also put pressure on profitability over time.
How Does the Zacks Consensus Estimate Compare for RKLB & SPCE?
The Zacks Consensus Estimate for Rocket Lab’s 2025 sales suggests a surge of 35.6% from the year-ago quarter’s reported figure, while that for its loss per share also implies a solid improvement. The company’s near-term bottom-line estimates reflect mixed movement over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SPCE’s 2025 sales implies a year-over-year decline of 77%, while that for its loss suggests a solid improvement. The stock’s annual bottom-line estimates have remained constant over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: RKLB vs. SPCE
RKLB (up 472.1%) has outperformed SPCE (down 43.3%) over the past year.
Image Source: Zacks Investment Research
Valuation of SPCE More Attractive Than RKLB
SPCE is trading at a forward sales of 12.46X, below RKLB’s 39.15X.
Leverage: RKLB vs. SPCE
The image below reflects that SPCE is more leveraged than RKLB, considering its high debt-to-capital ratio.
Image Source: Zacks Investment Research
Final Call
To conclude, both RKLB and SPCE are well-positioned to benefit from the growing opportunities in the space technology sector.
However, based on their recent developments and key financial indicators, SPCE appears to be the stronger and more stable option for long-term investors.
The company’s recent collaboration with Purdue University for the Purdue 1 research flight highlights its expanding role beyond tourism, while its more favorable valuation compared with RKLB makes it an attractive choice in the space market.
For investors looking for a balanced risk-reward profile within the space segment, SPCE remains the preferred pick.
Image: Bigstock
RKLB vs. SPCE: Which Space Stock is the Smarter Player?
Key Takeaways
As investors turn their attention to the growing space industry and national security needs, their interest in companies like Rocket Lab Corp. (RKLB - Free Report) and Virgin Galactic Holdings, Inc. (SPCE - Free Report) is increasing. Both operate in distinct areas of the space market but are key players in its expansion.
Rocket Lab provides launch services and builds space systems, focusing on small satellite launches through its Electron rocket. In contrast, Virgin Galactic is an aerospace and space travel company developing, manufacturing and operating spaceships that enable private individuals, researchers and government agencies to access space. The company’s missions include flying passengers and scientific payloads to suborbital space to support both commercial and research objectives.
Recently, investor interest in these stocks has grown due to higher defense spending, rising demand for satellite infrastructure and the expansion of commercial space activities. The growing focus on innovation in reusable launch vehicles and space tourism has also supported this trend.
With both RKLB and SPCE showing strong potential, investors may find it difficult to choose between them. Let’s take a closer look to see which one stands out as the smarter pick in the evolving space market.
Key Takeaways for RKLB
Recent Achievements: In October 2025, Rocket Lab achieved several important milestones that strengthened its position in the global space industry. The company successfully completed its 15th launch of the year and began a new series of 21 launches for Synspective.
Rocket Lab also cleared the Systems Integration Review (SIR) and finished building its Photon spacecraft for Eta Space and NASA’s LOXSAT mission. This project will test new cryogenic fuel storage technology in orbit, supporting plans to build a full-scale propellant depot by 2030.
Additionally, the company signed a direct contract with the Japan Aerospace Exploration Agency (“JAXA”) for two dedicated Electron launches, showing the growing trust of international agencies in Rocket Lab’s launch reliability. It also signed a new multi-launch deal with Japan’s iQPS, becoming the main launch provider for its commercial Earth-imaging satellite constellation.
Financial Stability: Rocket Lab ended the second quarter with a cash and cash equivalent of $688 million. Its current debt was $17 million, while its long-term debt totaled $415 million. This indicates that the company maintains a solid solvency position, enabling it to keep investing in innovative space technologies and supporting the manufacturing of components, sub-systems and assemblies across its full range of launch vehicles and spacecraft.
Challenges to Note: Rocket Lab faces notable risk in the form of high operating expenses, due to heavy investments in the development of next-generation technologies such as the Neutron rocket, satellite platforms and other advanced space systems. While these investments strengthen its long-term outlook, the rising costs have outpaced revenue growth in recent quarters, resulting in continued losses that could persist in the short run.
Key Takeaways for SPCE
Recent Achievements: In September 2025, Virgin Galactic announced a collaboration with Purdue University for a suborbital spaceflight named Purdue 1, which is planned for 2027. The mission will include a team of Purdue faculty, students and alumni who will conduct microgravity experiments on fluid behavior. This research is important for improving spacecraft design, fuel management and future long-duration missions. The partnership highlights Virgin Galactic’s growing efforts to support scientific research in addition to space tourism.
Financial Stability: SPCE ended the second quarter of 2025 with cash and cash equivalents of $500 million. Its long-term debt, as of June 30, 2025, was $421 million, while it had no notable current debt at the end of the second quarter of 2025. So, we may safely conclude that the company holds a solid solvency position, which should enable it to continue investing in the development of innovative space-based products.
Challenges to Note: Despite strong growth potential, SPCE faces several industry-specific risks. Ongoing supply-chain disruptions and the rising costs of raw materials could impact the company’s ability to deliver products and services on schedule while maintaining healthy margins. Persistent inflation and higher labor expenses may also put pressure on profitability over time.
How Does the Zacks Consensus Estimate Compare for RKLB & SPCE?
The Zacks Consensus Estimate for Rocket Lab’s 2025 sales suggests a surge of 35.6% from the year-ago quarter’s reported figure, while that for its loss per share also implies a solid improvement. The company’s near-term bottom-line estimates reflect mixed movement over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SPCE’s 2025 sales implies a year-over-year decline of 77%, while that for its loss suggests a solid improvement. The stock’s annual bottom-line estimates have remained constant over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: RKLB vs. SPCE
RKLB (up 472.1%) has outperformed SPCE (down 43.3%) over the past year.
Image Source: Zacks Investment Research
Valuation of SPCE More Attractive Than RKLB
SPCE is trading at a forward sales of 12.46X, below RKLB’s 39.15X.
Leverage: RKLB vs. SPCE
The image below reflects that SPCE is more leveraged than RKLB, considering its high debt-to-capital ratio.
Image Source: Zacks Investment Research
Final Call
To conclude, both RKLB and SPCE are well-positioned to benefit from the growing opportunities in the space technology sector.
However, based on their recent developments and key financial indicators, SPCE appears to be the stronger and more stable option for long-term investors.
The company’s recent collaboration with Purdue University for the Purdue 1 research flight highlights its expanding role beyond tourism, while its more favorable valuation compared with RKLB makes it an attractive choice in the space market.
For investors looking for a balanced risk-reward profile within the space segment, SPCE remains the preferred pick.
Both RKLB and SPCE carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.