Analyzing Rocket Lab (NASDAQ:RKLB) & Satellogic (NASDAQ:SATL)

Satellogic (NASDAQ:SATL) and Rocket Lab (NASDAQ:RKLB) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Valuation & Earnings

This table compares Satellogic and Rocket Lab”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Satellogic	$17.71 million	40.28	-$4.78 million	($0.82)	-5.66
Rocket Lab	$601.80 million	63.89	-$198.21 million	($0.27)	-238.00

Satellogic has higher earnings, but lower revenue than Rocket Lab. Rocket Lab is trading at a lower price-to-earnings ratio than Satellogic, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

17.6% of Satellogic shares are held by institutional investors. Comparatively, 71.8% of Rocket Lab shares are held by institutional investors. 38.8% of Satellogic shares are held by insiders. Comparatively, 8.4% of Rocket Lab shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Satellogic has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Rocket Lab has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500.

Profitability

This table compares Satellogic and Rocket Lab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Satellogic	-325.65%	303.84%	6.01%
Rocket Lab	-21.51%	-6.48%	-4.92%

Analyst Recommendations

This is a summary of current ratings for Satellogic and Rocket Lab, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Satellogic	1	1	5	1	2.75
Rocket Lab	1	5	13	4	2.87

Satellogic currently has a consensus target price of $8.90, suggesting a potential upside of 91.81%. Rocket Lab has a consensus target price of $108.83, suggesting a potential upside of 69.36%. Given Satellogic’s higher possible upside, equities analysts clearly believe Satellogic is more favorable than Rocket Lab.

Summary

Rocket Lab beats Satellogic on 9 of the 15 factors compared between the two stocks.

About Satellogic

Satellogic Inc. operates as an integrated geospatial company in the Asia Pacific, North America, and internationally. It engages in tasking satellites with monitoring assets and keeping up with their changing reality for government and commercial customers; control satellites on top of specific areas of interest for governments; and sale and support satellites. The company was founded in 2010 and is headquartered in Montevideo, Uruguay.

About Rocket Lab

Rocket Lab USA, Inc., a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets. It also designs, manufactures, and sells Electron, a reusable orbital-class small rocket; and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle; conducts remote launch activities; and designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components. The company serves commercial, aerospace prime contractors, and government customers. Rocket Lab USA, Inc. was founded in 2006 and is headquartered in Long Beach, California.