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

By AAII Staff
September 02, 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 Leonardo DRS, 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 Leonardo DRS, Inc. and Rocket Lab Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Leonardo DRS, Inc. and Rocket Lab Corporation

Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services worldwide. It operates through Advanced Sensing and Computing and Integrated Mission Systems segments. The Advanced Sensing and Computing segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications, such as platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The Integrated Mission Systems segment offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems, associated rugged and compact power conversion, electrical actuation systems, as well as advanced thermal management technologies, motor controllers, and instrumentation and control equipment. Leonardo DRS, Inc. was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo US Holding, LLC

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 Leonardo DRS, Inc., Rocket Lab Corporation Stock News

As of September 1, 2026, Leonardo DRS, Inc. had a $10.1 billion market capitalization, compared to the Aerospace & Defense median of $3.9 million. Leonardo DRS, Inc.’s stock is up 10.6% in 2026, down 2.3% in the previous five trading days and down 9.51% in the past year.

Currently, Leonardo DRS, Inc.’s price-earnings ratio is 31.7. Leonardo DRS, Inc.’s trailing 12-month revenue is $3.8 billion with a 8.5% net profit margin. Year-over-year quarterly sales growth most recently was 10.1%. Analysts expect adjusted earnings to reach $1.390 per share for the current fiscal year. Leonardo DRS, Inc. currently has a 1.0% dividend yield.

As of September 1, 2026, Rocket Lab Corporation had a $37.4 billion market cap, putting it in the 91st percentile of all stocks. Rocket Lab Corporation’s stock is down 10.3% in 2026, down 5.5% in the previous five trading days and up 28.68% 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 $-0.045 per share for the current fiscal year. Rocket Lab Corporation does not currently pay a dividend.

How We Compare Leonardo DRS, 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 Leonardo DRS, Inc. and Rocket Lab Corporation’s stock grades to see how they measure up against one another.

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Leonardo DRS, Inc. and Rocket Lab Corporation Stock Value Grades

Company Ticker Value
Leonardo DRS, Inc. DRS D
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.

Leonardo DRS, Inc. has a Value Score of 22, which is Expensive. Rocket Lab Corporation has a Value Score of 1, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Leonardo DRS, 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 Leonardo DRS, Inc. or Rocket Lab Corporation is the better investment when it comes to value.

Leonardo DRS, Inc. and Rocket Lab Corporation Growth Grades

Company Ticker Growth
Leonardo DRS, Inc. DRS B
Rocket Lab Corporation RKLB D

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Leonardo DRS, Inc. has a Growth Score of 73, which is Strong. Rocket Lab Corporation has a Growth Score of 29, which is Weak.

The Growth Grade Winner: Leonardo DRS, Inc.

As you can clearly see from the Growth Grade breakdown above, Leonardo DRS, Inc. has a more attractive growth grade than Rocket Lab Corporation. For investors who focus solely on how a company is growing relative to other companies in the same industry, Leonardo DRS, Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Leonardo DRS, Inc. and Rocket Lab Corporation’s Momentum Grades

Company Ticker Momentum
Leonardo DRS, Inc. DRS D
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%.

Leonardo DRS, Inc. has a Momentum Score of 29, which is Weak. Rocket Lab Corporation has a Momentum Score of 57, which is Average.

The Momentum Stock Winner: No Clear Winner

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

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Leonardo DRS, Inc. and Rocket Lab Corporation Grades

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

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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).

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite 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 F-Score.

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 Leonardo DRS, 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, Leonardo DRS, Inc. or Rocket Lab Corporation Stock?

Overall, Leonardo DRS, Inc. stock has a Value Score of 22, Growth Score of 73 and Momentum Score of 29.

Rocket Lab Corporation stock has a Value Score of 1, Growth Score of 29 and Momentum Score of 57.

Comparing Leonardo DRS, 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.

Learn More About A+ Investor

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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