SpaceX vs. Rocket Lab: Which Is the Better Space Stock to Own for the Next 5 Years?
SpaceX and Rocket Lab are both compelling space stocks, but one has a much stronger case for long-term investors.
Overview
The space economy has produced two very different public bets. Space Exploration Technologies Corp (NASDAQ: SPCX) is the dominant giant that reshaped the entire industry, while Rocket Lab (NASDAQ: RKLB) is the nimble challenger trying to become a smaller version of it. Both are tempting, but for an investor thinking five years out, I come down firmly on the side of SpaceX.
The single biggest difference between these two companies is Starlink. SpaceX's satellite-internet service already serves more than 10 million customers, generates the bulk of the company's revenue, and is its profit engine. It is a genuine, scaling business with a global runway, and SpaceX pegs its long-term connectivity opportunity in the trillions of dollars.
Details
Rocket Lab has nothing remotely comparable yet. It earns real revenue launching rockets and building satellites, which is impressive, but it is not yet consistently profitable and is still in the earlier chapters of its story. Over five years, owning the company that already prints cash is a meaningful advantage.
Source
Originally published at www.fool.com.