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Celestica vs. SpaceX: Which Aerospace Stock is the Better Buy Now?
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Key Takeaways
SPCX is the better investment pick, backed by stronger price performance and upward earnings revisions.
CLS' 2026 sales and EPS are projected to grow 64.3% and 87.1%, respectively, driven by strong AI demand.
SpaceX's 2026 sales are projected to surge 136.2%, while its forward price-to-sales ratio stands at 22.53.
Celestica Inc. (CLS - Free Report) and Space Exploration Technologies Corp. (SPCX - Free Report) are two key players in the aerospace and space technology markets. Celestica provides advanced electronics, engineering and manufacturing solutions for aerospace, defense and space applications, while SpaceX focuses on space transportation and satellite communications.
SpaceX integrates its space transportation and satellite communications businesses to create a mutually reinforcing business model. Its advanced rocket launch capabilities support the rapid deployment and expansion of its satellite network, while recurring revenues from Starlink provide financial resources to advance next-generation space technologies and long-term deep-space exploration initiatives.
Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for CLS
With more than two decades of experience in manufacturing, backed by a simplified and optimized global network, Celestica is committed to delivering next-generation, cloud-optimized data storage and industry-leading networking solutions to help customers balance performance, power efficiency and space as technologies evolve. The growing proliferation of AI-based applications and generative AI tools is fueling solid AI investments across the technology ecosystem. This, in turn, is driving demand for Celestica’s enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions and servers and storage-related products.
Celestica’s focus on product diversification and increasing its presence in high-value markets is positive. Its strong research and development foundations allow it to produce high-volume electronic goods and highly complex technology infrastructure products for a wide range of industries, including communication, healthcare, aerospace and defense, energy, semiconductor and various cloud-based and other service providers. Such a diverse customer base enhances business resilience by reducing dependence on a single industry and minimizing the effects on financial results from an economic downturn in a specific sector.
However, the company remains plagued by margin woes. Celestica’s products are highly sophisticated and typically based on the latest technological innovations, which have historically led to high research and development costs. High operating expenses have negatively impacted margins. Moreover, Celestica faces stiff competition from industry giants like Foxconn, Flex and Sanmina Corporation (SANM - Free Report) . The highly cyclical nature of the semiconductor industry remains an overhang, particularly in the aftermath of the tariff war.
The Case for SPCX
SpaceX has transformed the launch industry through its reusable Falcon 9 rockets, significantly reducing launch costs and increasing mission frequency. The company now conducts more launches annually than any of its global competitors, giving it a commanding share of the commercial launch market. In addition, Starlink provides recurring subscription income and potentially higher long-term margins. The business also benefits from a powerful competitive advantage. SpaceX can launch its own satellites at a fraction of the cost of its competitors, allowing Starlink to expand its network faster and more efficiently. As global demand for reliable broadband connectivity increases, Starlink's prospects become solid.
The Elon Musk-led company is aiming to evolve into a vertically integrated AI infrastructure company by combining advanced AI models, large-scale computing capabilities and satellite connectivity under one umbrella. The transformation is likely to unlock a significantly larger addressable market while diversifying the company's revenue base beyond launch services and Starlink. As part of the transition, xAI's flagship chatbot, Grok, has started operating under the SpaceXAI brand. The integration is expected to strengthen collaboration between the company's AI software, computing infrastructure and satellite network, creating a differentiated ecosystem that few competitors can match.
The company plans to deploy AI compute satellites as early as 2028, effectively creating space-based data centers capable of delivering large-scale computing capacity. This initiative leverages SpaceX's leadership in satellite deployment while addressing the growing demand for AI computing resources. Alongside its satellite ambitions, SpaceX continues to expand its Colossus data center platform, strengthening its position in AI infrastructure. SpaceX has also entered into a definitive agreement to acquire Anysphere in an all-stock deal valued at $60 billion. The buyout of a startup firm behind the rapidly growing AI coding assistant Cursor is primarily aimed at gaining a firmer footing in the enterprise AI market.
However, SpaceX is scaling several capital-intensive platforms simultaneously. The company is investing heavily in COLOSSUS, COLOSSUS II, Grok, enterprise offerings, compute services and future orbital AI compute. Management expects a multi-year investment cycle until sustained positive segment-adjusted EBITDA is realized. The strategy may create a cost advantage if compute, energy and launch assets integrate as planned. Until then, AI adds uncertainty to margins, capital needs and consolidated earnings quality.
How Do Zacks Estimates Compare for CLS & SPCX?
The Zacks Consensus Estimate for Celestica’s 2026 sales and EPS implies year-over-year growth of 64.3% and 87.1%, respectively. The EPS estimate for 2026 has inched down marginally over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SpaceX’s 2026 sales indicates year-over-year growth of 136.2%. EPS estimates have improved a stellar 350% over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of CLS & SPCX
Since its IPO, SpaceX has gained 1.6% compared with the industry’s growth of 135.1%. Celestica has declined 11.6% over the same period.
Image Source: Zacks Investment Research
Celestica looks more attractive than SpaceX from a valuation standpoint. Going by the price/sales ratio, Celestica’s shares currently trade at 1.36 forward sales, lower than 22.53 for SpaceX.
In terms of price performance, CLS has lagged SPCX. An uptrend in estimate revisions shows bullish investor sentiment for SpaceX, although Celestica appears to have attractive valuation metrics. With a better Zacks Rank and an uptrend in estimate revisions, SpaceX appears to be a better investment option at the moment.
View the Zacks #1 Rank List
Image: Bigstock
Celestica vs. SpaceX: Which Aerospace Stock is the Better Buy Now?
Key Takeaways
Celestica Inc. (CLS - Free Report) and Space Exploration Technologies Corp. (SPCX - Free Report) are two key players in the aerospace and space technology markets. Celestica provides advanced electronics, engineering and manufacturing solutions for aerospace, defense and space applications, while SpaceX focuses on space transportation and satellite communications.
SpaceX integrates its space transportation and satellite communications businesses to create a mutually reinforcing business model. Its advanced rocket launch capabilities support the rapid deployment and expansion of its satellite network, while recurring revenues from Starlink provide financial resources to advance next-generation space technologies and long-term deep-space exploration initiatives.
Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for CLS
With more than two decades of experience in manufacturing, backed by a simplified and optimized global network, Celestica is committed to delivering next-generation, cloud-optimized data storage and industry-leading networking solutions to help customers balance performance, power efficiency and space as technologies evolve. The growing proliferation of AI-based applications and generative AI tools is fueling solid AI investments across the technology ecosystem. This, in turn, is driving demand for Celestica’s enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions and servers and storage-related products.
Celestica’s focus on product diversification and increasing its presence in high-value markets is positive. Its strong research and development foundations allow it to produce high-volume electronic goods and highly complex technology infrastructure products for a wide range of industries, including communication, healthcare, aerospace and defense, energy, semiconductor and various cloud-based and other service providers. Such a diverse customer base enhances business resilience by reducing dependence on a single industry and minimizing the effects on financial results from an economic downturn in a specific sector.
However, the company remains plagued by margin woes. Celestica’s products are highly sophisticated and typically based on the latest technological innovations, which have historically led to high research and development costs. High operating expenses have negatively impacted margins. Moreover, Celestica faces stiff competition from industry giants like Foxconn, Flex and Sanmina Corporation (SANM - Free Report) . The highly cyclical nature of the semiconductor industry remains an overhang, particularly in the aftermath of the tariff war.
The Case for SPCX
SpaceX has transformed the launch industry through its reusable Falcon 9 rockets, significantly reducing launch costs and increasing mission frequency. The company now conducts more launches annually than any of its global competitors, giving it a commanding share of the commercial launch market. In addition, Starlink provides recurring subscription income and potentially higher long-term margins. The business also benefits from a powerful competitive advantage. SpaceX can launch its own satellites at a fraction of the cost of its competitors, allowing Starlink to expand its network faster and more efficiently. As global demand for reliable broadband connectivity increases, Starlink's prospects become solid.
The Elon Musk-led company is aiming to evolve into a vertically integrated AI infrastructure company by combining advanced AI models, large-scale computing capabilities and satellite connectivity under one umbrella. The transformation is likely to unlock a significantly larger addressable market while diversifying the company's revenue base beyond launch services and Starlink. As part of the transition, xAI's flagship chatbot, Grok, has started operating under the SpaceXAI brand. The integration is expected to strengthen collaboration between the company's AI software, computing infrastructure and satellite network, creating a differentiated ecosystem that few competitors can match.
The company plans to deploy AI compute satellites as early as 2028, effectively creating space-based data centers capable of delivering large-scale computing capacity. This initiative leverages SpaceX's leadership in satellite deployment while addressing the growing demand for AI computing resources. Alongside its satellite ambitions, SpaceX continues to expand its Colossus data center platform, strengthening its position in AI infrastructure. SpaceX has also entered into a definitive agreement to acquire Anysphere in an all-stock deal valued at $60 billion. The buyout of a startup firm behind the rapidly growing AI coding assistant Cursor is primarily aimed at gaining a firmer footing in the enterprise AI market.
However, SpaceX is scaling several capital-intensive platforms simultaneously. The company is investing heavily in COLOSSUS, COLOSSUS II, Grok, enterprise offerings, compute services and future orbital AI compute. Management expects a multi-year investment cycle until sustained positive segment-adjusted EBITDA is realized. The strategy may create a cost advantage if compute, energy and launch assets integrate as planned. Until then, AI adds uncertainty to margins, capital needs and consolidated earnings quality.
How Do Zacks Estimates Compare for CLS & SPCX?
The Zacks Consensus Estimate for Celestica’s 2026 sales and EPS implies year-over-year growth of 64.3% and 87.1%, respectively. The EPS estimate for 2026 has inched down marginally over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SpaceX’s 2026 sales indicates year-over-year growth of 136.2%. EPS estimates have improved a stellar 350% over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of CLS & SPCX
Since its IPO, SpaceX has gained 1.6% compared with the industry’s growth of 135.1%. Celestica has declined 11.6% over the same period.
Image Source: Zacks Investment Research
Celestica looks more attractive than SpaceX from a valuation standpoint. Going by the price/sales ratio, Celestica’s shares currently trade at 1.36 forward sales, lower than 22.53 for SpaceX.
Image Source: Zacks Investment Research
CLS or SPCX: Which is a Better Pick?
Clestica carries a Zacks Rank #3 (Hold) while SpaceX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In terms of price performance, CLS has lagged SPCX. An uptrend in estimate revisions shows bullish investor sentiment for SpaceX, although Celestica appears to have attractive valuation metrics. With a better Zacks Rank and an uptrend in estimate revisions, SpaceX appears to be a better investment option at the moment.