Data Vs. Infrastructure: The Difficult Space Race Choice Between Planet Labs and Rocket Lab
The Pentagon is pouring nearly $60 billion into space, and two very different companies are racing to grab their share. One sells intelligence from orbit, the other builds the machines that get there, and only one of them looks underpriced…
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Planet Labs (NYSE:PL) and Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) both posted record quarters on defense demand. Planet sells imagery and AI analytics. Rocket Lab builds and launches hardware. The Pentagon’s FY2027 request sets space funding at $59.7 billion, making this comparison critical.
Defense Buyers Feed Planet’s Pixels and Rocket Lab’s Factories
Planet’s revenue rose 58.1% to $116.05M, with defense and intelligence revenue growing more than 90%. Commercial grew only more than 15%. Planet delivered Sweden’s armed forces a sovereign satellite about four months after signing, and CEO Will Marshall called that speed “a huge differentiation.”
Rocket Lab reached $234.07M in revenue, with Space Systems adding $189.5 million. Satellites now matter more than rockets. A $397M Flatellite award for the Space Force helped lift backlog to $2.36B. That gives Rocket Lab years of visible work.
| Business Driver | Planet Labs | Rocket Lab |
|---|---|---|
| Growth Engine | Defense imagery, sovereign satellites | Space Force spacecraft, launch |
| Non-GAAP Gross Margin | 59% | 41.5% |
| Adjusted EBITDA | $13.93M profit | $8.8M loss |
| Visibility | 98% recurring ACV | 90+ launch backlog |
One Sells Answers While the Other Buys the Whole Stack
Planet’s AI application entered open beta with underlying models like Gemini or Anthropic. Marshall said “the commoditization of those models only accentuates the extra value that we have of our data.” He sets Planet’s Earth observation share at under 5%, leaving room to grow if the archive keeps its advantage.
Rocket Lab plans to buy Iridium, which has 66 satellites and more than 2.5 million subscribers. Peter Beck wants a “self-launching, tier-1 space power.” Mynaric runs below Space Systems margins, and Rocket Lab is integrating three deals simultaneously.
Neutron’s Debut and Planet’s Q3 Dip Are Coming Fast
Planet forecast Q3 revenue to $101M-$105M with adjusted EBITDA loss. Point-in-time revenue was 12% of the quarter, so some beat came from one-time deliveries. Watch whether the over $4 billion satellite services pipeline turns to signed contracts.
Rocket Lab still targets delivering Neutron to the launch pad in Q4 2026, but management admits the window is narrowing. It says standalone positive cash flow could come 18 to 24 months after a successful test flight.
Why I Lean Toward Planet’s Margin Engine at Today’s Price
The choice comes down to whether you prefer a picks-and-shovels industrial compounder or a high-margin software engine with execution hurdles. Rocket Lab performs better today. It trades at 61.48 times trailing sales against Planet’s 16.77, and that price assumes Neutron works.
Planet is down 14.86% this year even though its margins are higher. That gap draws me in. A clean Neutron flight would change my view fast, and so would another quarter of weak commercial growth at Planet.
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Alex Sirois is a financial writer with experience spanning both retail and institutional investing. He has written for InvestorPlace and held roles at BNY Mellon and Bernstein, giving him a perspective that bridges Main Street portfolios and Wall Street analysis.
Alex holds an MBA from George Washington University and has built his career across multiple industries, including e-commerce, education, and translation — a breadth of experience that informs how he breaks down complex financial topics for everyday investors. His writing is conversational, actionable, and grounded in long-term, buy-and-hold investing principles.
At 247 Wall St., Alex focuses on delivering analysis that is both accessible and useful, with a clear emphasis on helping readers make more informed decisions with their money.
