Clamoring to Invest in SpaceX but Can't? Consider Buying Stock in This Competitor That Just Upped Its National Defense Game.

Brett Schafer, The Motley Fool

Sat, Jun 7, 2025, 10:16 AM 5 min read

• Rocket Lab has a lot of similarities to SpaceX.

• Its government relationships and new Neutron rocket can drive revenue higher.

• Similar to SpaceX, Rocket Lab is valued at an expensive multiple to its sales.

• 10 stocks we like better than Rocket Lab ›

SpaceX is the most valuable privately held company in the world, estimated to be worth $350 billion. Too bad you cannot buy its shares on the stock market today. All the gains and value generated by SpaceX have been reserved for insiders, venture capitalists, and the company's employees. Seeing these gains without being able to get in on them might be frustrating for investors who don't have access to the venture capital market.

All may not be lost, though. If you truly want to invest in SpaceX, a copycat business in Rocket Lab (NASDAQ: RKLB) may be for you. Here's why anyone clamoring to buy SpaceX stock should seriously consider Rocket Lab for their portfolio instead.

Rocket Lab is a niche space company, but one that is nipping on SpaceX's heels. It is the only other company to reliably launch rockets for customers at scale, with its Electron program consistently launching for customers every quarter. The company has won contracts from commercial and government buyers because of how small the Electron rocket is. SpaceX's systems are not meant for a nimble or small payload, which is how Rocket Lab attacked the market previously monopolized by SpaceX.

These capabilities have allowed Rocket Lab to win contracts for national defense systems such as HASTE (Hypersonic Accelerator Suborbital Test Electron), which helps the government test hypersonic defense capabilities. These reliable contracts are only growing, with huge potential for more government spending on space defense in the years to come. For example, the proposed Golden Dome missile defense system is expected to cost $175 billion, and Rocket Lab is in a prime position to win contracts associated with this program if it comes into being, as well as many others.

A relationship with the U.S. government for national defense priorities could be quite lucrative for Rocket Lab as it tries to take the next steps as a business. This is why it just acquired Geost -- a satellite laser operator -- for $275 million.

Looking ahead, Rocket Lab is preparing for a future in which it more directly competes with SpaceX rockets via its Neutron rocket, which will be much larger than the Electron and have a similar payload to SpaceX's Falcon 9 rocket system. Rocket Lab is currently testing the Neutron and hopes to be ready for commercial launches next year.