Better Space Stock: Rocket Lab vs. Redwire

By Rich Smith – Mar 29, 2026 at 9:30AM ESTKey PointsNASA wants to build a moon base, and both Rocket Lab and Redwire may have roles in that.Rocket Lab's Neutron rocket could carry cargo to the moon; Redwire could use that cargo to build infrastructure.Redwire stock is a lot cheaper than Rocket Lab stock.Rocket Lab (RKLB 7.66%) sure lived up to its name this week, rocketing more than 10% on Wednesday after NASA Administrator Jared Isaacman unveiled his new "Ignition" plan to build a base on the moon. On Tuesday, March 24, NASA announced its plans for launching dozens of uncrewed rockets to put cargo and science experiments on the moon. Artemis-crewed space launches will begin this year, and the launch pace will accelerate to two launches per year shortly thereafter. The price tag for all this is $20 billion. As investors digested the details of Tuesday's announcement, they were left with visions of big stock profits dancing in their heads. By Wednesday, the buying frenzy was in full force, with multiple space stocks soaring by double digits. Just not Redwire Corporation (RDW 8.01%). Redwire stock went up only 1%. Image source: Getty Images. And I think that's a mistake. Why buy Rocket Lab? Don't get me wrong. I agree that the investors who bought up Rocket Lab and a few other space stocks this week may be on the right track.

Although Rocket Lab's tiny Electron rockets lack the necessary "oomph" to put appreciable payloads of cargo on the moon today, Rocket Lab's larger Neutron rocket, which should enter service this year, will. As NASA diversifies its stable of launch providers and seeks companies to help it reach its goal of launching one cargo mission per month (in addition to the two crewed missions per year), I fully expect Rocket Lab to compete for and win NASA contracts to help build the moon base. ExpandNASDAQ: RKLBRocket LabToday's Change(-7.66%) $-5.05Current Price$60.89Key Data PointsMarket Cap$35BDay's Range$60.36 - $66.0852wk Range$14.71 - $99.58Volume688KAvg Vol22MGross Margin31.66% Redwire stock could go to the moon The thing is, at its heart, Ignition is a project to install infrastructure on the moon, capable of supporting long-term occupation of a moon base and keeping astronauts alive on the moon on a "semi-permanent" basis. The key word in all of this is infrastructure, and Redwire is a space infrastructure specialist, providing engineering services, spacecraft docking systems, solar panels to provide power, antennas for communication, and even 3-D printing equipment for manufacturing parts outside Earth's atmosphere. As NASA builds out its moon base, it seems almost a given that Redwire will play a role. ExpandNYSE: RDWRedwireToday's Change(-8.01%) $-0.71Current Price$8.16Key Data PointsMarket Cap$1.6BDay's Range$8.11 - $8.8452wk Range$4.87 - $22.25Volume17MAvg Vol24MGross Margin5.15% Rocket Lab versus Redwire: Valuation matters Admittedly, Redwire wasn't named as a recipient of any contracts under the Ignition program -- yet. (After all, the program's only a few days old.) But then again, neither has Rocket Lab. What's most important to me as an investor is that the stock market has already priced in a lot of growth for Rocket Lab, whereas this hasn't happened yet for Redwire. Neither stock is currently profitable, so the market cannot yet assign a price-to-earnings value to either Rocket Lab or Redwire. We can value them on sales, however, and at nearly 60 times trailing sales, Rocket Lab stock simply doesn't have as much upside potential as does Redwire. At 3.3 times trailing sales today, Redwire is easily the cheapest space stock I follow. I also think it's a superior bet to make on NASA's plan to build an American base on the moon.Read NextMar 25, 2026 •By Rich SmithWhy Redwire Stock Popped TodayMar 9, 2026 •By Rich SmithWhy Redwire Corporation Stock Popped TodayMar 29, 2026 •By Lee SamahaHere's What to Expect for Gold and Silver Mining Stocks as the Iran Conflict ContinuesMar 29, 2026 •By Lee SamahaShould You Buy Defense Stocks After the Iran Conflict Sent Them to All-Time Highs?Mar 29, 2026 •By Rich SmithPre-IPO Gecko Robotics Wins Its Biggest-Ever Navy ContractMar 29, 2026 •By Selena MaranjianThe Investor Behavior That Destroys More Wealth Than Any Market CrashAbout the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedRedwireNYSE: RDW$8.16(-8.01%)-$0.71Rocket LabNASDAQ: RKLB$60.89(-7.66%)-$5.05*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.