Space exploration has been attracting investors since the beginning of time. People love rocket ships and cool technology, but sometimes it can be hard to figure out which stocks are worth investing in.
The recent space venture of Jeff Bezos and Richard Branson created a lot of buzz in the Canadian stock market. With many experts calling this first-of-its-kind venture the pioneer of commercial spaceflights, the space stocks in NASDAQ skyrocketed.
The majority of these stocks have since come down. However, stock analysts predict that these space stocks won’t stay down for long. So if you have been considering investing in this high-potential industry, there has never been a better time to check out the top Canadian space companies.
Canadian Space Stocks You Should Invest In
Here is a quick list of the top Space stocks you could invest in;
- MDA Ltd.
- Maxar Technologies
- Magellan Aerospace
- Maritime Launch
US Space Stocks:
- Lockheed Martin
- Raytheon Technologies
- Virgin Galactic and Orbit
- Northrop Grumman
- Rocket Lab
The Canadian Space Sector is home to more than nine space-related publicly traded companies and over 200 organizations, all of which excel in this field with cutting-edge technology. However, these are not the only space stocks you can invest in; new space companies are also being formed.
The red-hot space stocks in Canada include those which operate as a secondary in Canada while having their stronghold in the US. Here is a list of to top Canadian space stocks on the TSX showing a promising growth rate, along with some of the top performers from US space stocks.
MDA Ltd. (TSX: MDA)
Once a rocket has surpassed Earth’s premises, much technical expertise goes into maintenance and upkeep. MDA Ltd. is a Brampton, Ontario-based company specializing in manufacturing satellite constellations using proprietary advanced technology. In addition, this company has played a key role in the robotic assembly systems of US stations that conduct scientific research in space. It has proven to be one of the best companies, with a knack for rapid innovation.
Initially considered a miss when its initial public offering went public on the Toronto Stock Exchange, MDA Ltd. soon catapulted to a prominent position in the stock market as one of the top Canadian space stocks. This space company, formerly known as MacDonald, Dettwiler, and Associates, raised 400 million Canadian dollars when it first went public.
However, after a large chunk went into the debt payments, the company decided to invest the rest of its capital in the R&D department. This decision seems to be paying off. Recently, MDA Ltd. landed a government contract to design an AI-Powered Canadarm3 worth $35.3 million.
All of these factors make it a promising space stock worth investing in. Moreover, MDA Ltd. is actively looking for ongoing growth initiatives. This is a good sign for its stock price in the future when commercial space flights will be much more common. Moreover, with a debt/equity ratio of 117.22, it is a lower-risk investment than its competitors.
Maxar Technologies Inc (TSX: MAXR)
After crashing 24% in May 2021, Maxar Technologies showed its mettle by recovering steadily. They quickly recovered after selling off a few assets and are now highly sought-after in the Canadian stock market. Trading at $38.85 at 7:54 am (PDT), this stock has always been considered a safe investment by stock traders.
Maxar Technologies is a renowned innovator in aerospace infrastructure and is famous for its state-of-the-art satellite systems. This company was the sole owner of MDA limited until April, when it decided to sell MDA for a hefty sum of 1 billion CAD.
Space exploration company Maxar boasts several advanced products, such as a geospatial imaging satellite business and broadband services. In addition, it has created a communication network between the infrastructure in orbit and the monitoring stations on Earth.
Maxar makes satellites with decades of experience manufacturing communication satellites, including the world-famous 1300-class platform. They also provide earth imagery, geospatial data, and analytics.
Several industries, such as Defence, Intelligence, and Earth Observation, rely on Maxar Tech for commercial geospatial intelligence. As a result, the authentic data analytics provided by Maxar Technologies has always been a subject of interest among engineers. Using the tools and services offered by Maxar, data scientists and analysts can pinpoint any suspicious activity in their territory.
The high Price-to-Earnings ratio is a testament to the growing interest in this space stock. Although TSX shows random fluctuations in its stock price, it won’t be a bad investment.
On May 25, 2022, satellite-imagery companies Maxar Technologies, Planet Labs and BlackSky Technology ( BKSY ) won contracts worth billions over the next decade. Maxar, in particular, will build the first components for NASA’s Lunar Gateway.
Magellan Aerospace Inc. (TSX: MAL)
The space industry is not all about launching rockets and space shuttles; it is a diverse sector that requires the collaboration of several sectors to function optimally. Magellan Aerospace is the premier aerospace company based in Canada that aids engine manufacturing with complex assemblies. Magellan is known for its advanced product manufacturing capabilities offered to military and civilian companies. In addition, this Canadian space technology firm manufactures space robotics and sensors for missions and is reportedly working on a platform for vessel detection.
Magellan and its services support deep space missions, maintenance services, space travel-related services for navigation and more.
The company currently has a market cap of $586 million. Its massive clientele includes the likes of Boeings and Airbus. The share volume of this company is 1500 at the moment and is likely to increase soon. Like all other aerospace industries, this company also faced a massive depreciation during the peak of covid-19; it was at its lowest in December 2020.
However, despite the challenges, Magellan has shown incredible recovery potential. As a result, the share price has gained about 30% since December 2022. This guarantees a promising future for Magellan Aerospace.
Maritime Launch Services Inc. (MAXQ: NEO)
Maritime Launch services is a company from Nova Scotia that is developing a spaceport in Canada (also in Nova Scotia) to launch satellites and other small payload rockets, serving clients in the commercial space transportation industry. They are still a start-up but keep an eye on this stock as the company develops. MLS is listed on the Neo exchange in Canada.
The Boeing Company (BA: US)
With the rapidly plummeting stocks of Virgin Galactic Holdings Inc, stock investors have turned to the evergreen Boeing Company. But, of course, commercial and Military aircraft have been their bread and butter for a long time.
The stock prices of Boeing peaked in late-2018, a time when they were considered the most in-demand stocks in the airline industry. However, two back-to-back crashes of Boeing’s flagship airliner sent its stocks into a downward spiral. The aftershocks of this accident were seen for the next two years when the company agreed to a hefty settlement fee. In addition, the covid-19 pandemic caused the aerospace industry to go into a multi-billion dollar deficit.
Despite all of this, the space stocks of Boeing have made a significant comeback. The grounded Boeing 737 Max is back to flying hundreds of passengers after passing rigorous security checks. This news has positively affected the stock prices of Boeing company, which now has more than $25 billion in assets.
Although Boeing is primarily a commercial airline company, its space ventures have caught the eye of various investors. Boeing is enabling research projects on International Space Station using its technology and expertise in the space industry.
Lockheed Martin (NASDAQ: LMT)
Another prominent space stock to watch is Lockheed Martin, which has a long history as one of the top space stocks. It built the solid propellant launch escape motor and the pitch control motor for the Apollo 11 spacecraft, and it designed and built the F-35 fighter jet for the air force. Now Lockheed is developing the deep-space Orion spacecraft for Boeing’s SLS rocket, the most powerful rocket ever.
Magellan Aerospace also has contracts with Lockheed Martin to supply parts.
Raytheon Technologies (RTX: US)
Raytheon Technologies is an American-based aerospace company under the ticker symbol RTX specializing in innovative aerospace equipment. This includes high-tech gadgets such as avionics, aerospace engines, and guided missiles. Raytheon is one of the pioneering companies that shaped the global aerospace industry.
It boasts a long-lasting partnership with the US Department of Defense. Approximately 90% of all US space shuttle missions went into deep space with the support of Raytheon technology.
Raytheon Tech traces its origins back to 1922. It played an instrumental part in the Apollo missions of NASA. One of the most incredible accomplishments of this company is the manufacturing of the Apollo Guidance Computer, which played a vital role in the navigation and control of the spacecraft.
With a positive Price-to-Earnings ratio of 55.6 and the company’s shares paying a dividend yield of 2.31%, this space stock is showing promising signs. The second-quarter earnings have been encouraging, and the company looks set to achieve its goals of 2025, making it an ideal stock to invest in.
Virgin Galactic Holdings (NASDAQ: SPCE)
Virgin Galactic (NASDAQ: SPCE) is a well-known company that has been making headlines in recent years, focusing on the tourism side of space. The company was founded by Richard Branson and is focused on becoming the world’s first commercial spaceflight provider. The company has two divisions: Virgin Galactic, which aims to provide suborbital flights for customers, and sister company Virgin Orbit ( VORB ), which designs and builds commercial orbital launchpads for commercial customers.
Virgin Galactic hopes to popularize space tourism by making space travel accessible to the everyday person.
Northrop Grumman (NOC)
Northrop Grumman (NOC) is a commercial aerospace company with good long-term growth. Founded in 1939, Northrop Grumman is a leading aerospace and defence company that provides products, services and solutions for military and commercial customers worldwide.
Northrop Grumman’s space portfolio includes a range of satellites, launch vehicles, propulsion systems, and other components for exploration. The company also provides mission support services, including launch operations, spacecraft assembly and testing, and launch range operations.
Northrop Grumman (NOC) has been one of the leading space stocks since it acquired rocket maker Orbital ATK in 2018. The company is developing the OmegA heavy-lift rocket and satellites, as well as the James Webb Space Telescope for NASA. In January, the James Webb telescope arrived at its destination, a million miles from Earth.
Rocket Lab USA, Inc. (RKLB)
Rocket Lab USA, Inc. (RKLB) is a space company specializing in developing, manufacturing and launching small launch vehicles for commercial and government customers. The company mainly provides reliable, cost-effective access to orbit for small payloads. Rocket Lab has developed an innovative two-stage orbital launch vehicle – Electron – that can launch up to 150kg payloads to a 500km sun-synchronous orbit.
The company has launched dozens of missions, including the first commercial launch from New Zealand in 2018 and the first fully integrated mission for DARPA in 2019. Rocket Lab is also developing an orbital transfer vehicle – Photon – to transport satellites between orbits.
Rocket Lab became a publicly-traded company through a SPAC in Dec 2020. They provide space infrastructure for rocket launches for the global space industry. They also have developed a new interplanetary radio and reaction wheel for constellations to fill critical gaps in the supply chain.
Why Choose Space Stocks in Canada?
Canadian space stocks were at an all-time high before recent negative share price movements due to the economic downturn. But even in turmoil, each company continues to show good fundamentals and product use.
As a result, stock analysts are looking to invest in growth stocks, and witnessing the current trajectory, investing in these private companies is a good bet. In addition, the growing public interest in popular space companies has prompted Morgan Stanley to call the space economy a trillion-dollar industry.
This space race has given rise to numerous private companies, the most notable being SpaceX by Elon Musk. These companies strive to launch commercial space flights in the depths of space. Along with this, they also aid government agencies using observation satellites and satellite imagery analysis.
The legacy of the space industry is Boeing (BA) building its space taxis and powerful rockets. However, to return astronauts to the moon and Mars, NASA works with other established space companies such as Lockheed Martin (LMT) and other emerging companies.
What does the Space Industry Do in Canada?
The space industry works primarily with launching satellites to collect data. You might think space companies are only tasked with launching rockets, but that’s not it. There is much more to it than meets the eye. The majority of these space companies, determined to put humans on spaceflights, are, in fact, defence conglomerates. They dedicate a large chunk of their revenue to making human intervention beyond Earth possible with the help of any significant innovation.
Investment potential in the space industry is not only limited to stocks. Space exploration ETFs have also shown promising growth potential and are more in demand since they are safer than stocks.
Most Canadian space companies generate revenue from commercial and defence industries, so the chances of their stocks going down are minimal. Moreover, along with American space stocks, Canadian space stocks are predicted to reach new milestones as soon as the recent economic recession subsides.
Outer space will see around 50,000 new satellites by 2030. With the rapid advancements in the space industry, the interest in flights for space tourists is taking off.
Does SpaceX have stock?
No, SpaceX does not have public stock available. The company is privately owned by its founder and CEO, Elon Musk. However, it has been reported that the company may go public in the near future. In addition, there are other options to invest in space exploration and technology through Canadian stocks.
SpaceX is one of the most established companies in the space race in the 21st century.
Does Blue Origin have stock?
Blue Origin is a private aerospace company founded by Amazon.com founder Jeff Bezos. The company does not have public stock and is not listed on any public exchanges, nor does it plan to do so.
Blue Origin specializes in aerospace technology and has developed several rockets, including the New Shepard launch vehicle. The company also offers space tourism flights and is working on a reusable launch system to reduce the cost of launching satellites and other payloads.
TSX Artificial Intelligence Companies
Are there ETFs for publicly traded space companies?
Yes, there are several ETFs available that track publicly-traded space companies. For example, the Space ETF invests in stocks from space-related companies and industries, such as satellite communications, aerospace engineering and defence contractors. The most popular Canadian space stock ETF is the Horizons Space Sector Index ETF (HXS). This fund invests in a portfolio of 30 to 45 listed Canadian and U.S. companies involved in the global space industry.
We monitor and invest in these aerospace companies that manufacture and operate satellites, robotics, artificial intelligence, data communications and the production of hardened equipment for zero-gravity. An ideal tech stock is part of an expanding addressable market that quickly increases maximum profitability.