Back to top

Image: Bigstock

RKLB vs. AVAV: Which Stock Looks Better in the Space Race?

Read MoreHide Full Article

Key Takeaways

  • Rocket Lab benefits from steady Electron launches and new U.S. government satellite contracts.
  • AVAV sees momentum from U.S. Army deliveries and a five-year contract supporting allied sales.
  • RKLB shares surged over the past year as revenue growth accelerated despite a higher valuation.

As space becomes increasingly crowded, the United States continues to invest heavily in satellite operations, communications, missile warning systems and space-based ISR to strengthen resilience and maintain its strategic edge. This trend has brought companies such as Rocket Lab USA, Inc. (RKLB - Free Report) and AeroVironment, Inc. (AVAV - Free Report) into sharper focus among investors due to their strong exposure to the space sector.

Rocket Lab primarily specializes in small satellite launches, spacecraft components and space systems that support both government and commercial missions. AeroVironment, while widely known for its unmanned aerial vehicles, also provides a broad range of space-qualified hardware used across geosynchronous, medium and low Earth orbits, as well as cislunar missions.

With demand for space based services rising and being increasingly driven by commercial customers, both RKLB and AVAV are well positioned to benefit from long term industry growth. In this context, a closer comparison can help determine which stock offers better potential in the evolving space economy.

Tailwinds for RKLB

RKLB continues to benefit from steady launch activity and rising contract wins, supporting its long term growth outlook. In December 2025, Rocket Lab successfully completed its 21st Electron launch of the year, deploying a satellite for Japan based Earth imaging company iQPS. This mission further strengthened Rocket Lab’s role as the primary launch provider for iQPS, with a total of seven satellites deployed so far and five more Electron launches planned from 2026.

The company also secured a major boost from the U.S. government. In December 2025, Rocket Lab was awarded a contract by the U.S. Space Development Agency to design and manufacture 18 satellites for the Tracking Layer Tranche 3 program. This contract highlights Rocket Lab’s growing credibility in national security space and expands its footprint as a satellite manufacturer.

Additionally, Rocket Lab successfully completed the STP-S30 mission for the U.S. Space Force, delivering the launch five months ahead of schedule. The mission supports the advancement of space based technologies critical to U.S. defense capabilities. Together, these achievements underscore Rocket Lab’s strong execution, diversified customer base and expanding role across commercial and government space programs.

Tailwinds for AVAV

AVAV continues to benefit from strong demand for defense technologies and steady contract wins, supporting its long term growth outlook. In December 2025, AeroVironment delivered two JLTV mounted mobile counter UAS laser weapon systems to the U.S. Army under the AMP HEL program. This delivery highlights the company’s progress in advanced air defense solutions.

Earlier in the month, AeroVironment won a five year contract valued at up to $874.3 million from the U.S. Army Contracting Command. The contract supports future foreign military sales and allows allied forces to purchase a range of unmanned aerial and counter UAS systems, along with training and logistics support.

These developments reflect AeroVironment’s solid execution and expanding role as a key supplier of unmanned and counter drone systems to the U.S. military and its allies.

How do EPS Estimates Compare for RKLB & AVAV?

The Zacks Consensus Estimate for RKLB’s 2025 loss is pegged at 20 cents per share, indicating year-over-year improvement. The consensus estimate for revenues is pinned at $600.5 million, implying growth of 37.7%. The company’s 2025 and 2026 EPS estimates have improved over the past 60 days.

Zacks Investment Research
Image Source: Zacks Investment Research

For AVAV, the Zacks Consensus Estimate for fiscal 2026 EPS is pegged at $3.48, indicating a growth of 6.1% from the prior-year quarter. Its consensus estimate for revenues is pinned at $2 billion, implying growth of 143.7%. The company’s fiscal 2026 and 2027 EPS estimates have moved south over the past 60 days.

Zacks Investment Research
Image Source: Zacks Investment Research

Stock Price Performance: RKLB vs. AVAV

RKLB has outperformed AVAV over the past year. Shares of RKLB have gained 191.5% compared with AVAV’s growth of 59.5%.

Zacks Investment Research
Image Source: Zacks Investment Research

AVAV’s Valuation More Attractive Than RKLB

RKLB trades at a forward 12-month Price/Sales (P/S F12M) multiple of 48.84X compared with AVAV’s 5.78X, making the latter relatively more attractive from a valuation perspective.

Zacks Investment Research
Image Source: Zacks Investment Research

Surprise History

RKLB delivered an average earnings surprise of 11.51% in the last four quarters, while AVAV delivered an average negative earnings surprise of 22.65% in the last four quarters.

Conclusion

Both Rocket Lab and AeroVironment are benefiting from increased investments in space and defense. While AeroVironment offers a diversified defense portfolio and attractive valuation, its recent estimate revisions and slower stock performance limit its appeal.

Rocket Lab stands out due to its strong execution, rapid revenue growth and expanding presence across commercial and government space programs. Its consistent launch activity and improving outlook support its long term growth story.

Overall, for investors focused on growth and strategic positioning in the space economy, RKLB appears to be the stronger pick. Both RKLB and AVAV currently carry a Zacks Rank #3 (Hold).

You can see the full list of today’s Zacks Rank #1 (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AeroVironment, Inc. (AVAV) - free report >>

Rocket Lab Corporation (RKLB) - free report >>

Published in