Rocket Lab (RKLB) vs. Planet Labs (PL): Which Space Stock Is the Better Buy for 2026?

As the space industry continues to grow, Rocket Lab RKLB +3.37% ▲ and Planet Labs PL +16.83% ▲ are standing out as top performers. However, they are two very different types of investments. More specifically, Rocket Lab is building the “infrastructure” of space, such as rockets and satellites, while Planet Labs focuses on selling data and insights from space. Therefore, investors are choosing between a higher-growth, more capital-heavy business and a more stable, software-like model. Interestingly, analysts currently think that Rocket Lab is the better buy in terms of upside potential. Nevertheless, let’s break down each company.

End of Quarter Sale - 50% Off TipRanks

• Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

• Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks

Rocket Lab: The Growth and Infrastructure Play

We’ll begin with Rocket Lab, which operates as a full space company with a backlog of about $1.85 billion. This is important because it gives it strong visibility into future revenue. In addition, its Space Systems segment now accounts for about 67% of total revenue, indicating that its business is expanding quickly beyond just rocket launches. The company also secured a major $816 million contract with the Space Development Agency, which highlights the strong and growing demand from government customers.

However, there are some risks. For instance, the company is heavily investing in its new Neutron rocket, but delays have pushed its first launch to late 2026. Meanwhile, Rocket Lab is still burning cash to fund its growth, which could pressure the stock if things don’t go as planned. Even so, analysts remain positive overall, giving Rocket Lab a Moderate Buy rating and an average price target of $86.92 per share that suggests 28.3% upside.

Planet Labs: The Data and Stability Play

In contrast, Planet Labs takes a different approach by focusing on data instead of hardware. It provides Earth imaging and analytics as a service, which makes its business feel more like a software company. Recently, Planet reached an important milestone by achieving positive adjusted EBITDA and $52.9 million in free cash flow. In addition, it has strong gross margins of around 60% and about 98% recurring revenue, which adds stability.

However, growth remains uncertain. The company faces longer sales cycles, especially with commercial customers, and there are questions about how well its newer AI-powered analytics products will scale. Still, analysts give Planet Labs a Strong Buy rating, though the average price target of $34.90 per share implies that shares are trading near fair value.

The Takeaway

Overall, the decision between Rocket Lab RKLB +3.37% ▲ and Planet Labs PL +16.83% ▲ depends on what kind of investment you’re looking for. Rocket Lab offers higher upside potential, supported by its large backlog and growing role in space infrastructure, but it also comes with more risk and ongoing cash burn. Meanwhile, Planet Labs provides a more stable business with strong margins and consistent revenue, though its growth outlook is more modest. As a result, investors looking for bigger returns may prefer Rocket Lab, while those who want more stability may lean toward Planet Labs.

Disclaimer & DisclosureReport an Issue