Investors face a choice between high-growth disruption and steady government contracting when choosing between Space Exploration Technologies (NASDAQ:SPCX), better known as SpaceX, and BWX Technologies (NYSE:BWXT) for their portfolios in 2026.
SpaceX’s focus on reusable rocketry and satellite internet contrasts with the nuclear manufacturing expertise of BWX Technologies. While one aims to lower the cost of reaching orbit, the other provides critical nuclear solutions for global security and clean energy.
The case for SpaceX
Space Exploration Technologies designs and operates reusable rockets, the Starship platform, and the Starlink broadband service. By March 2026, the company served 10.3 million Starlink subscribers across 164 countries and territories. Its business strategy centers on reducing launch costs through reusability while leveraging its own rockets to deploy a massive satellite constellation.
In its 2025 fiscal year (FY), revenue reached $18.7 billion, representing revenue growth of 33% compared to the previous year. Despite this top-line expansion, the company reported a net loss of $4.9 billion for the period. This performance reflects a shift from the prior year when the company achieved a positive net income during its aggressive expansion phase.
As of its December 2025 balance sheet, the current ratio stands at 1.4x, which measures a company’s ability to cover short-term debts with current assets. The company carries a debt-to-equity ratio of 0.6x, comparing its total debt to the value of shareholder equity. Free cash flow, or the cash remaining after the business pays for its operating activities and investments in physical equipment, was negative $14 billion in FY 2025. Note that stock-based compensation (SBC) represented 28.7% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for BWX Technologies
BWX Technologies provides specialized nuclear components and services among defense stocks and global security industries. Its primary customer is the U.S. government, which accounted for 68% of consolidated revenues in 2025. Customer concentration like this adds a layer of risk to the business, though it often provides long-term revenue visibility through multi-year contracts.
In FY 2025, revenue reached $3.2 billion, which was an increase of 18% over the prior year. The company reported net income of $329.9 million, resulting in a net margin of 10.3%. This level of profitability has remained relatively stable over the last three fiscal years as the company expanded its manufacturing footprint.
In terms of financial health, the company reported a debt-to-equity ratio of 1.6x as of its December 2025 balance sheet. This figure compares total debt to the value of shareholder equity. Its current ratio stands at 2.3x, suggesting it has ample liquid assets to cover obligations due within one year. The company generated free cash flow of $295.3 million during FY 2025.
Risk profile comparison
SpaceX operates in a capital-intensive industry that requires constant technological breakthroughs. The high cost of developing reusable rockets and the Starship platform presents ongoing financial pressure. The company also faces increasing competition in the satellite internet market from Amazon, which is developing its own satellite constellations to compete with Starlink.
BWX Technologies faces significant concentration risk since the U.S. government remains its largest customer. The company also manages high-consequence nuclear activities under strict oversight from government agencies. Operations often involve fixed-price contracts where rising costs for labor or materials can hurt the net margin. Furthermore, reliance on joint ventures with partners such as Amentum means it has limited control over some large projects.
Valuation comparison
BWX Technologies appears more conservative based on its lower Forward P/E, while Space Exploration Technologies carries a high P/S ratio. The Forward P/E measures the stock price against future earnings estimates, while the P/S ratio compares the price to the company’s annual sales.
Sector benchmark uses the SPDR XLI sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Deciding to invest in SpaceX or BWX Technologies (BWXT) depends on whether you are a risk taker willing to bet on the spectacular potential of a space-based economy, or prefer the more conservative investment of a defense stock.
SpaceX only became a public company in June while BWXT has a long history of performance that investors can review. That’s one reason why buying shares in the former is a risk. Another is that SpaceX’s debt picture looks poised to change in 2026. Shortly after its IPO, the company announced a $25 billion bond issuance to fund its capital-intensive operations.
BWXT is my pick for the stock to buy in 2026. SpaceX is too speculative at this stage. Meanwhile, BWXT has an enormous opportunity in front of it. The company produces components for nuclear power, and with the rise of artificial intelligence, the demand for electricity is soaring, so much so that the U.S. Department of Energy estimates power shortages by 2030.
Consequently, organizations are turning to nuclear power, creating a huge market for BWXT. In its first quarter earnings report, the company noted a whopping 121% year-over-year increase in sales to the commercial sector to $283.6 million. This reduces BWXT’s reliance on the government while providing a growing revenue stream for the company.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $371,842!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,244,783!*
Now, it’s worth noting Stock Advisor’s total average return is 900% — a market-crushing outperformance compared to 207% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of July 19, 2026.
Robert Izquierdo has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Amentum, and BWX Technologies. The Motley Fool has a disclosure policy.
SpaceX vs. BWX Technologies: Which Industrials Stock Is a Better Buy in 2026? was originally published by The Motley Fool
