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Planet Labs vs. Rocket Lab: Which Space Stock Has an Edge?
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Key Takeaways
RKLB has an edge over PL, backed by price performance and stronger growth estimates.
Planet Labs sees demand for Earth-observation data but remains unprofitable amid high costs.
Rocket Lab's defense demand, backlog visibility and vertical integration support growth.
Lower launch costs, stronger government investment in advanced space and defense technologies, and growing commercial use of satellite services are fueling the space economy. Demand continues to rise across satellite communications, Earth observation, defense, navigation, climate monitoring, and data infrastructure, creating significant growth opportunities for industry participants.
In this context, Planet Labs (PL - Free Report) and Rocket Lab Corporation (RKLB - Free Report) are worth mentioning as both deploy AI into their core functions. Planet Labs is a leading provider of Earth-imaging data and geospatial analytics, operating the largest fleet of Earth-observation satellites globally.
Rocket Lab is an end-to-end space company that provides launch services, spacecraft, spacecraft components, optical systems, flight and ground software, and on-orbit mission operations. Let's discuss in detail.
The Case for Planet Labs
Planet Labs generates the majority of its revenues through a combination of fixed-price subscriptions and usage-based contracts, delivering satellite imagery and geospatial analytics through its cloud-based platform to government agencies and enterprise customers. Growth has been driven by the expansion of recurring subscription revenues, increasing government demand and a strategic shift toward higher-value analytics and data services.
The company has increasingly focused on securing large government and defense contracts, which provide stronger revenue visibility and longer-term stability. At the same time, management sees meaningful commercial opportunities as AI-powered analytics and imaging tools—initially developed for government applications—expand into industries such as agriculture, energy, insurance, finance, supply chain monitoring and operational intelligence.
For second-quarter fiscal 2027, Planet Labs expects revenues between $102 million and $107 million, with non-GAAP gross margins of 52% to 55%. Adjusted EBITDA is projected to range from breakeven to a $5 million profit, while capital expenditures are expected to be between $21 million and $27 million.
For full-year fiscal 2027, management forecasts revenues of $425 million to $441 million, non-GAAP gross margin of 52% to 54%, and adjusted EBITDA ranging from breakeven to a $10 million profit. Capital expenditures are expected to total $80 million to $95 million.
Despite improving scale, Planet Labs remains unprofitable and is unlikely to achieve sustained profitability in the near term. Continued investments in satellite infrastructure, elevated R&D spending, and high operating costs continue to put pressure on margins, while returns on equity and invested capital remain below industry averages.
The company is still in the red, and a rebound is not expected soon.
PL shares have gained 43.1% year to date.
The Case for Rocket Lab
Rocket Lab is transitioning from a niche launch provider into a vertically integrated space infrastructure company with growing exposure to defense, satellite systems, and advanced space technologies. The company has established operational credibility through its Electron rocket program while steadily expanding into higher-value segments of the space economy.
Management has built a diversified aerospace platform spanning launch services, spacecraft manufacturing, satellite components, mission software and space systems integration. This diversification has reduced reliance on launch revenues alone and created a more balanced, scalable business model with multiple long-term growth drivers.
A major catalyst is the development of the Neutron rocket, which targets the medium-lift market currently led by larger competitors such as SpaceX. If successful, Neutron could significantly expand Rocket Lab’s addressable market, improve economics through partial reusability, and support larger commercial and government missions.
The company is also deepening vertical integration through acquisitions and internal product development. The acquisition of Motiv Space Systems, now operating as Rocket Lab Robotics, strengthens capabilities in robotics, motion control and spacecraft mechanisms. These technologies enhance Rocket Lab’s ability to deliver end-to-end mission solutions for planetary exploration, national security programs, satellite constellations, orbital infrastructure and emerging space-based computing applications.
At the same time, increasing defense demand is creating opportunities in responsive launch, hypersonics and missile defense. Improving margins and a solid balance sheet provide financial flexibility to fund Neutron development, scale production, and pursue additional strategic acquisitions. Backlog visibility supports near-term revenues.
RKLB shares have rallied 50% year to date.
Estimates for PL and RKLB
The Zacks Consensus Estimate for PL’s fiscal 2027 revenues implies a year-over-year increase of 40.2%, while the same for earnings per share (EPS) suggests a 75% year-over-year decline. EPS estimates have moved south in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RKLB’s 2026 revenues implies a year-over-year rise of 52.8%, and the same for EPS implies a year-over-year increase of 55.6%. EPS estimates witnessed no movement in the past 30 days.
Image Source: Zacks Investment Research
Are PL and RKLB Shares Expensive?
PL is trading at a forward sales multiple of 20.82, above its median of 3.96 over the last three years. RKLB’s forward sales multiple sits at 56.26, higher than its median of 13.83 over the last three years.
Image Source: Zacks Investment Research
Conclusion
Planet Labs, a data-driven company focused on Earth-observation imagery and analytics, is poised to grow, given the rising global demand for commercial satellites.
Defense demand, backlog visibility, scalable launch cadence, vertical integration, and liquidity support growth for Rocket Lab.
Despite its premium valuation, RKLB’s price performance and growth estimates give it an edge over PL. RKLB carries a Zacks Rank #3 (Hold), while PL carries a Zacks Rank #5 (Strong Sell).
View the Zacks #1 Rank List
Image: Bigstock
Planet Labs vs. Rocket Lab: Which Space Stock Has an Edge?
Key Takeaways
Lower launch costs, stronger government investment in advanced space and defense technologies, and growing commercial use of satellite services are fueling the space economy. Demand continues to rise across satellite communications, Earth observation, defense, navigation, climate monitoring, and data infrastructure, creating significant growth opportunities for industry participants.
In this context, Planet Labs (PL - Free Report) and Rocket Lab Corporation (RKLB - Free Report) are worth mentioning as both deploy AI into their core functions. Planet Labs is a leading provider of Earth-imaging data and geospatial analytics, operating the largest fleet of Earth-observation satellites globally.
Rocket Lab is an end-to-end space company that provides launch services, spacecraft, spacecraft components, optical systems, flight and ground software, and on-orbit mission operations. Let's discuss in detail.
The Case for Planet Labs
Planet Labs generates the majority of its revenues through a combination of fixed-price subscriptions and usage-based contracts, delivering satellite imagery and geospatial analytics through its cloud-based platform to government agencies and enterprise customers. Growth has been driven by the expansion of recurring subscription revenues, increasing government demand and a strategic shift toward higher-value analytics and data services.
The company has increasingly focused on securing large government and defense contracts, which provide stronger revenue visibility and longer-term stability. At the same time, management sees meaningful commercial opportunities as AI-powered analytics and imaging tools—initially developed for government applications—expand into industries such as agriculture, energy, insurance, finance, supply chain monitoring and operational intelligence.
For second-quarter fiscal 2027, Planet Labs expects revenues between $102 million and $107 million, with non-GAAP gross margins of 52% to 55%. Adjusted EBITDA is projected to range from breakeven to a $5 million profit, while capital expenditures are expected to be between $21 million and $27 million.
For full-year fiscal 2027, management forecasts revenues of $425 million to $441 million, non-GAAP gross margin of 52% to 54%, and adjusted EBITDA ranging from breakeven to a $10 million profit. Capital expenditures are expected to total $80 million to $95 million.
Despite improving scale, Planet Labs remains unprofitable and is unlikely to achieve sustained profitability in the near term. Continued investments in satellite infrastructure, elevated R&D spending, and high operating costs continue to put pressure on margins, while returns on equity and invested capital remain below industry averages.
The company is still in the red, and a rebound is not expected soon.
PL shares have gained 43.1% year to date.
The Case for Rocket Lab
Rocket Lab is transitioning from a niche launch provider into a vertically integrated space infrastructure company with growing exposure to defense, satellite systems, and advanced space technologies. The company has established operational credibility through its Electron rocket program while steadily expanding into higher-value segments of the space economy.
Management has built a diversified aerospace platform spanning launch services, spacecraft manufacturing, satellite components, mission software and space systems integration. This diversification has reduced reliance on launch revenues alone and created a more balanced, scalable business model with multiple long-term growth drivers.
A major catalyst is the development of the Neutron rocket, which targets the medium-lift market currently led by larger competitors such as SpaceX. If successful, Neutron could significantly expand Rocket Lab’s addressable market, improve economics through partial reusability, and support larger commercial and government missions.
The company is also deepening vertical integration through acquisitions and internal product development. The acquisition of Motiv Space Systems, now operating as Rocket Lab Robotics, strengthens capabilities in robotics, motion control and spacecraft mechanisms. These technologies enhance Rocket Lab’s ability to deliver end-to-end mission solutions for planetary exploration, national security programs, satellite constellations, orbital infrastructure and emerging space-based computing applications.
At the same time, increasing defense demand is creating opportunities in responsive launch, hypersonics and missile defense. Improving margins and a solid balance sheet provide financial flexibility to fund Neutron development, scale production, and pursue additional strategic acquisitions. Backlog visibility supports near-term revenues.
RKLB shares have rallied 50% year to date.
Estimates for PL and RKLB
The Zacks Consensus Estimate for PL’s fiscal 2027 revenues implies a year-over-year increase of 40.2%, while the same for earnings per share (EPS) suggests a 75% year-over-year decline. EPS estimates have moved south in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RKLB’s 2026 revenues implies a year-over-year rise of 52.8%, and the same for EPS implies a year-over-year increase of 55.6%. EPS estimates witnessed no movement in the past 30 days.
Image Source: Zacks Investment Research
Are PL and RKLB Shares Expensive?
PL is trading at a forward sales multiple of 20.82, above its median of 3.96 over the last three years. RKLB’s forward sales multiple sits at 56.26, higher than its median of 13.83 over the last three years.
Image Source: Zacks Investment Research
Conclusion
Planet Labs, a data-driven company focused on Earth-observation imagery and analytics, is poised to grow, given the rising global demand for commercial satellites.
Defense demand, backlog visibility, scalable launch cadence, vertical integration, and liquidity support growth for Rocket Lab.
Despite its premium valuation, RKLB’s price performance and growth estimates give it an edge over PL. RKLB carries a Zacks Rank #3 (Hold), while PL carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.