Rocket Lab vs. Planet Labs: Which Space Stock Stands Stronger in 2025?

Growing global demand for commercial satellites, particularly for communications and climate monitoring, has been fueling investor interest in space-focused companies like Rocket Lab USA RKLB and Planet Labs PBC PL, lately. Alongside this, rising government spending on advanced space-based defense capabilities has added further momentum to the space economy and its players.Rocket Lab stands out with its comprehensive space offerings, ranging from reliable launch services and spacecraft to satellite components and on-orbit management. On the other hand, Planet Labs specializes in Earth imaging and analytics, providing valuable insights across industries.With declining launch costs and rapid technological advancements making space more accessible, investors are increasingly eyeing space stocks for strong growth potential. Both Rocket Lab and Planet Labs appear well-positioned to benefit from these trends, raising the question: which of the two is a stronger contender in space? Let’s take a closer look.Key Takeaways for RKLBRecent Achievements: In September 2025, RKLB achieved a milestone by delivering two Explorer-class spacecraft to NASA’s Kennedy Space Flight Center for the Escape and Plasma Acceleration and Dynamics Explorers (ESCAPADE) mission. This mission highlights Rocket Lab’s expanding role in supporting advanced scientific research.In August, RKLB officially opened Launch Complex 3, a dedicated facility for testing, launching and landing its reusable Neutron rocket. This marks an important step toward strengthening its role in the medium-lift launch market.In the same month, Rocket Lab completed its 70th Electron launch, reaffirming Electron’s position as the most frequently launched small orbital rocket and highlighting RKLB’s leadership in responsive space operations.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, driven by 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 PLRecent Achievements: In September 2025, Planet Labs announced that its German subsidiary, Planet Labs GmbH, will begin production of next-generation, high-resolution Pelican satellites in Germany. This strategic move should bolster Planet Labs’ footprint in the European satellite market, where a rising demand for high-performance satellites has been witnessed lately.Also in September, Planet Labs made the data products from its Tanager-1 satellite available to customers. These offerings include Tanager core imagery to support detailed analyses of Earth’s surface and atmosphere, as well as a new Methane Quicklook product developed in collaboration with Carbon Mapper, which will help track greenhouse gas emissions more effectively.Financial Stability: Planet Labs ended the second quarter of fiscal 2026 with cash and cash equivalents of $278 million. Both its current and long-term debts, as of July 31, 2025, were nil. This indicates that the company maintains a strong solvency position, enabling its continued investment in agile space missions, including the advancement of core spacecraft technologies, automated mission operations for Planet’s satellite fleet and ground stations, payload development and engineering operations to drive potential scale efficiencies.Challenges to Note: Planet Labs, still in its growth phase, has yet to achieve consistent bottom-line profitability. High research and development expenses, coupled with the capital-intensive nature of the space industry, could continue to weigh on its financial performance and operational stability.Additionally, the company faces market uncertainties like slower-than-anticipated demand for satellites and data products. Its success over the long run depends on the cost, performance and perceived value of its offerings, and whether customer education leads to broader market adoption.How do Zacks Estimates Compare for RKLB & PL?The Zacks Consensus Estimate for Rocket Lab’s 2025 sales suggests a surge of 34.7% from the year-ago quarter’s reported figure, while that for its loss per share also implies a solid improvement. The stock’s near-term bottom-line estimates have improved over the past 60 days.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Planet Lab’s fiscal 2026 sales implies a year-over-year improvement of 16.6%, while that for its loss per share implies a solid improvement. The stock’s near-term bottom-line estimates have moved north over the past 60 days.Image Source: Zacks Investment ResearchStock Price Performance: RKLB vs. PLPL (up 97%) has outperformed RKLB (up 31.8%) over the past three months and has done the same in the past year. Shares of PL and RKLB have surged 434% and 376.8%, respectively, in a year.Image Source: Zacks Investment ResearchValuation of Planet Labs More Attractive Than Rocket LabPL is trading at a forward sales multiple of 9.00X, below RKLB’s forward sales multiple of 28.67X.ROE: RKLB vs. PLThe image below, reflecting a negative Return on Equity (ROE) for RKLB and PL, suggests that neither space company is generating profits from its equity base very efficiently.Image Source: Zacks Investment ResearchConclusionConsidering the aforementioned discussion, Rocket Lab emerges as the stronger contender. Its diverse offerings and consistent launch record highlight operational maturity. Despite Planet Labs' discounted valuation and stock outperformance, its concentrated business faces significant market uncertainty and has a much lower projected sales improvement (16.6% vs. RKLB's 34.7%).While both companies show negative ROE, RKLB's stronger cash position of $688 million provides a better foundation for sustaining heavy investments, positioning it for more robust long-term growth.RKLB carries a Zacks Rank #3 (Hold), while PL has a Zacks Rank #4 (Sell) at present.You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Planet Labs PBC (PL): Free Stock Analysis Report Rocket Lab Corporation (RKLB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks