Rocket Lab Beats Redwire on Growth, but Investors Pay 53x Sales

Rocket Lab generated $601.8 million in revenue in fiscal 2025, up roughly 38% year over year, while Redwire posted $335.4 million, a gain of about 10.3%. That growth gap sits at the center of the investment case for the two space stocks heading into 2026 — and it explains why Rocket Lab trades at a price-to-sales ratio of 53.1x, more than ten times Redwire's 5.0x, according to valuation data from Financial Modeling Prep.

The two companies occupy different positions in the commercial space supply chain. Redwire manufactures mission-critical components for satellites and spacecraft, serving civil, commercial, and national security customers including NASA and the U.S. Space Force. Rocket Lab has built a leadership position in small satellite launches and is pushing toward end-to-end space services with its own launch vehicles.

Neither company made money last year. Redwire reported a net loss of nearly $226.6 million in FY 2025, a negative net margin of roughly 67.6%. Rocket Lab lost close to $198.2 million, or about negative 32.9% of revenue — a much narrower margin despite its larger absolute loss.

The balance sheets tell a more nuanced story. Redwire's debt-to-equity ratio stood at approximately 0.12x as of its December 2025 balance sheet, with a current ratio of roughly 1.6x. Rocket Lab carries a debt-to-equity ratio of about 0.1x and a current ratio near 4.1x, indicating high liquidity for daily operations.

Free cash flow diverges sharply. Redwire burned roughly $190.8 million in free cash flow for the year. Rocket Lab burned nearly $321.8 million, reflecting heavy investment in its Neutron rocket program and other long-term projects.

Concentration and integration risks

Redwire carries a significant customer concentration problem. Two customers accounted for roughly 39% of its 2025 revenue, exposing the company to volatility if a single contract slips. The company also depends on third-party launch vehicles to get its hardware into orbit and is currently remediating material weaknesses in its internal control over financial reporting — issues that can produce reporting delays or errors if left unresolved.

Rocket Lab's risks are different. The company leans heavily on its Electron launch vehicle, and any failure or delay in that program could hit financial performance directly. Its pending acquisition of Iridium Communications (NASDAQ:IRDM) adds integration risk. The deal is financed through large-scale equity offerings and term loans, and it has already increased Rocket Lab's total debt leverage as the company scales.

The bull case for each

Rocket Lab's backlog just crossed $2 billion, and the Neutron program adds a larger launch vehicle that could open an entirely new customer base in the years ahead. The company counts NASA and the NRO among its major customers.

Redwire, meanwhile, is a more interesting company than most investors may realize. In the latest quarter, revenue nearly doubled year over year and gross margins turned positive for the first time. The company also holds a record backlog heading into next year.

Verdict

For investors weighing the two, the analysis favors Rocket Lab. Its commercial momentum, faster revenue growth, and stronger liquidity make it the stronger pick in the emerging space economy — provided buyers accept the premium. Rocket Lab trades at a forward P/E of 1,110x, meaning investors are paying today for what they believe the company will become. That demands consistent execution.

So far, Rocket Lab has delivered. But with both stocks still unprofitable and Rocket Lab's Iridium integration still ahead, the margin for error in 2026 is thin.