Which Is a Better Investment, Rocket Lab USA Inc or Woodward Inc Stock?

By AAII Staff
September 05, 2026
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Sifting through countless of stocks in the Aerospace & Defense industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Woodward, Inc. or Rocket Lab Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Woodward, Inc. and Rocket Lab Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Woodward, Inc. and Rocket Lab Corporation

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. It operates through two segments, Aerospace and Industrial. The Aerospace segment offers fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, as well as flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. This segment also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. Its Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, control systems, electronics and software, and sensors used on industrial gas turbines, steam turbines, compressors, and reciprocating engines, as well as aftermarket products and related services. The company primarily serves OEMs and equipment packagers. Woodward, Inc. was founded in 1870 and is headquartered in Fort Collins, Colorado.

Rocket Lab Corporation, a space company, provides launch services and space systems solutions in the United States, Canada, Japan, and internationally. The company operates through launch services and space systems segments. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, optical systems, and other spacecraft and on-orbit management solutions and constellation management services, as well as designs and manufactures small and medium-class rockets and develops flight and ground software. It also designs, manufactures, and sells Electron, an orbital small launch vehicle for small spacecraft launch services, as well as develops Neutron launch vehicles for large constellation deployments, interplanetary missions, and potentially for human spaceflight. In addition, the company designs and manufactures a range of components and subsystems for its launch vehicles and spacecraft. It serves commercial, aerospace prime contractors, and government customers. Rocket Lab Corporation was formerly known as Rocket Lab USA, Inc. and changed its name to Rocket Lab Corporation in August 2021. The company was founded in 2006 and is headquartered in Long Beach, California.

Latest Aerospace & Defense and Woodward, Inc., Rocket Lab Corporation Stock News

As of September 4, 2026, Woodward, Inc. had a $20.4 billion market capitalization, compared to the Aerospace & Defense median of $4.0 million. Woodward, Inc.’s stock is up 14.5% in 2026, up 1.3% in the previous five trading days and up 41.55% in the past year.

Currently, Woodward, Inc.’s price-earnings ratio is 38.5. Woodward, Inc.’s trailing 12-month revenue is $4.2 billion with a 13.2% net profit margin. Year-over-year quarterly sales growth most recently was 21.2%. Analysts expect adjusted earnings to reach $9.458 per share for the current fiscal year. Woodward, Inc. currently has a 0.4% dividend yield.

As of September 4, 2026, Rocket Lab Corporation had a $38.5 billion market cap, putting it in the 91st percentile of all stocks. Rocket Lab Corporation’s stock is down 7.9% in 2026, down 0.2% in the previous five trading days and up 49.48% in the past year.

Currently, Rocket Lab Corporation does not have a price-earnings ratio. Rocket Lab Corporation’s trailing 12-month revenue is $769.1 million with a -21.5% net profit margin. Year-over-year quarterly sales growth most recently was 62.0%. Analysts expect adjusted earnings to reach $-0.046 per share for the current fiscal year. Rocket Lab Corporation does not currently pay a dividend.

How We Compare Woodward, Inc. and Rocket Lab Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Woodward, Inc. and Rocket Lab Corporation’s stock grades to see how they measure up against one another.

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Woodward, Inc. and Rocket Lab Corporation Stock Value Grades

Company Ticker Value
Woodward, Inc. WWD F
Rocket Lab Corporation RKLB F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Woodward, Inc. has a Value Score of 13, which is Ultra Expensive. Rocket Lab Corporation has a Value Score of 1, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Woodward, Inc. or Rocket Lab Corporation has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Woodward, Inc. or Rocket Lab Corporation is the better investment when it comes to value.

Woodward, Inc. and Rocket Lab Corporation’s Quality Grades

Company Ticker Quality
Woodward, Inc. WWD A
Rocket Lab Corporation RKLB D

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Woodward, Inc. has a Quality Score of 81, which is Very Strong. Rocket Lab Corporation has a Quality Score of 35, which is Weak.

The Quality Grade Winner: Woodward, Inc.

As you can clearly see from the Quality Grade breakdown above, Woodward, Inc. has a better overall quality grade than Rocket Lab Corporation. For investors who are looking for companies with higher quality than others in the same industry, Woodward, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Woodward, Inc. and Rocket Lab Corporation’s Momentum Grades

Company Ticker Momentum
Woodward, Inc. WWD B
Rocket Lab Corporation RKLB C

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Woodward, Inc. has a Momentum Score of 65, which is Strong. Rocket Lab Corporation has a Momentum Score of 55, which is Average.

The Momentum Grade Winner: Woodward, Inc.

As you can clearly see from the Momentum Grade breakdown above, Woodward, Inc. is considered to have stronger momentum compared to Rocket Lab Corporation. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Woodward, Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

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Other Woodward, Inc. and Rocket Lab Corporation Grades

In addition to Quality, Momentum and Value, A+ Investor also provides grades for Growth and Estimate Revisions.

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Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Woodward, Inc. and Rocket Lab Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Woodward, Inc. or Rocket Lab Corporation Stock?

Overall, Woodward, Inc. stock has a Value Score of 13, Momentum Score of 65 and Quality Score of 81.

Rocket Lab Corporation stock has a Value Score of 1, Momentum Score of 55 and Quality Score of 35.

Comparing Woodward, Inc. and Rocket Lab Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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