Financial analysis: Rocket Lab USA (NASDAQ: RKLB) and Redwire (NYSE: RDW)


Redwire (NYSE:RDW – Get Rating) and Rocket Lab USA (NASDAQ:RKLB – Get Rating) are both aerospace companies, but which is the better stock? We’ll compare the two companies based on earnings strength, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares the net margins, return on equity, and return on assets of Redwire and Rocket Lab USA.

Net margins Return on equity return on assets
red cable N / A -88.89% -21.40%
Rocket Lab United States N / A -25.30% -12.94%

Benefits and evaluation

This chart compares revenue, earnings per share, and valuation of Redwire and Rocket Lab USA.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
red cable $137.60 million 2.87 -$61.54 million N / A N / A
Rocket Lab United States $62.24 million 57.57 -$117.32 million N / A N / A

Redwire has higher revenue and profit than Rocket Lab USA.

Volatility and risk

Redwire has a beta of 2.03, suggesting its stock price is 103% more volatile than the S&P 500. Comparatively, Rocket Lab USA has a beta of -2.21, suggesting its stock price is 321 % less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Redwire and Rocket Lab USA, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
red cable 0 0 1 0 3.00
Rocket Lab United States 0 1 5 0 2.83

Redwire currently has a consensus price target of $15.00, suggesting a potential upside of 138.47%. Rocket Lab USA has a consensus price target of 18.50, suggesting a potential upside of 139.95%. Considering the possible higher upside of Rocket Lab USA, analysts clearly believe that Rocket Lab USA is more favorable than Redwire.

Institutional and insider ownership

14.9% of Redwire shares are held by institutional investors. Comparatively, 60.1% of Rocket Lab USA shares are held by institutional investors. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock will outperform the market over the long term.

Summary

Rocket Lab USA beats Redwire on 6 out of 10 factors compared between the two stocks.

About Redwire (Get an assessment)

Redwire Corporation, a space infrastructure company, develops, manufactures and sells critical space components and solutions for national security, civil and commercial markets in the United States and abroad. It offers technology solutions for space commercialization, digitally designed spacecraft, and space awareness and resilience; advanced sensors and components; and in-orbit servicing, assembly and manufacturing solutions. Redwire Corporation is headquartered in Jacksonville, Florida.

About Rocket Lab USA (Get an assessment)

Rocket Lab USA, Inc., an aerospace company, focuses on the development of rocket launch and control systems for the space and defense industries. The Company provides launch services, spacecraft components, satellites and other spacecraft, as well as in-orbit management solutions; and designs, manufactures and sells electron and neutron launchers, as well as offers a Photon platform for spacecraft solutions. It serves clients in the commercial, civil, defense and academic sectors. The company was founded in 2006 and is based in Long Beach, California.



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Sarah J. Greer