Are you looking for satellite companies to invest in? Do you want to invest in an emerging industry and the future of space?
There are many reasons why you should consider investing in satellite companies. Unfortunately, these companies are often overlooked because they aren’t as sexy as tech companies. But they offer great returns with little risk.
I’ve compiled a list of the top satellite companies to look at. These companies will help you make big profits over the next few years. And since they’re not as well known, you won’t find them listed anywhere else.
Why Satellite Stocks in Canada?
Our continuing coverage of the stock market in the satellite space is built on the foundations laid by aerospace. However, space satellite companies are now making fast progress in developing new business models, products, and services far from and superior to traditional aerospace. Our Allocations of Space Stocks Much of our Strategic Space Value Chain research highlights listed space companies with significant niche technology advantages within the space industry. We then track and invest in these space stocks; some are also involved in aerospace, making and operating satellites, robotics, AI, data, communications, and manufacturing space-hardened hardware. We are on the sidelines now regarding these five space operator stocks as we continue our search for the diamonds in the rough of the space stocks.
What Are the Best Satellite Companies to Invest in?
Satellite companies are an excellent way for investors to diversify their portfolios. They offer a unique opportunity to invest in an industry that is growing rapidly, and they can provide some of the best returns on investment. However, there are many different satellite companies, so it’s important to know what you should look for when investing in satellites.
SpaceX & Blue Origin
Whether we call these satellite stocks, satellite operator stocks, or space stocks is not essential; we are simply interested in determining whether or not each one deserves consideration in a disruptive technology stocks portfolio. See our space stocks topic for the complete list of companies and a review of their financials. SpaceX continues to achieve new milestones as a private company, which has spurred investors’ appetite for publically traded space stocks, which have rapidly grown over the past few years. The space industry is also poised for record-breaking initial public offerings over the next few years, with companies such as SpaceX and Blue Origin — valued at $74 and $10 billion, respectively — poised to drive this boom.
Virgin Galactic (NYSE:SPCE)
Demand for shares of space companies trading has increased thanks to the Viring Galactic listings, with many retail investors anticipating the SpaceX IPO. Another likely cause for increased interest in the private sector in space is the reusability of rockets developed by companies such as SpaceX. Reusable rockets made commercialization of space possible, with human spaceflight, satellite broadband, and even rare-earth mineral hunting dominating the space industry headlines.
The cost to launch a satellite has dropped to around $60 million, down from $200 million, with potential reductions as low as $5 million. The space market has advanced by leaps and bounds over the last several years, driven by huge investments by billionaires such as Elon Musk, Jeff Bezos, and Richard Branson, which has managed to reduce the launch cost of a satellite from $200 million a decade ago to around $60 million. Today, all companies we are talking about have the need to pay a launch company to put their satellites in space. If Elon Musk can put all 34,000 satellites into space, coupled with cheaper Internet for the masses, then it is difficult to see how Iridium can compete with the economies of scale that SpaceX has.
Lockheed Martin Corporation (NYSE:LMT)
Satellite communications offer the highest amount of pure-play publicly traded companies for investors looking to invest in the space sector. The space industry is diverse, ranging from manufacturers, broadband providers, operators, and ground systems companies. For example, Lockheed Martin (LMT) is a diverse aerospace company that makes satellites and spacecraft for government and commercial customers.
Lockheed Martin is developing the Orion spacecraft, intended for NASA’s Human Spaceflight Program, which will venture to deep space and orbit around the Moon. The 10-year contract includes delivering twenty new engines to the Orion for future space missions. Engine manufacturer Aerojet Rocketdyne also provides engines for the Space Launch System rocket, a joint venture with Boeing that includes an upper stage of its Vulcan rocket and the third stage of Northrop’s OmegA rocket.
Northrop Grumman (NYSE:NOC)
While it generates more than half of its revenues from rocket defence systems, it is also ready for growth in the space business, given contracts for its New Shepard rocket, the OmegA from Northrop, and ULAs Vulcan rocket. SpaceX Falcon 9 rocket regularly delivers payloads to space for NASA, the Pentagon, and other governments and companies, and SpaceX Falcon Heavy has launched commercial and government payloads. In addition to carrying payloads, Blue Origin plans to bring tourists to space and is developing its satellite constellation for Internet services. Many U.S.-based space companies depend on Russian launch technologies, and Russia recently threatened to pull its Soyuz capsules away from the International Space Station.
ViaSat, Inc. (NASDAQ:VSAT)
Russia recently demonstrated one more way of taking the Russian incursion in Ukraine to space when it refused to launch 36 satellites for UK-based OneWeb, the UK’s most prominent satellite-building firm until the firm confirmed that the satellites would not be used for military purposes. In addition, space stocks like Viasat (VSAT) have reported cyberattacks and disruptions involving their satellites, with some pointing fingers at Russia.
Aerojet Rocketdyne (NYSE:AJRD)
NASA is also working with other established space stocks like Aerojet Rocketdyne alongside newer space companies to get astronauts back on the Moon and Mars. While you cannot buy a share in SpaceX, the apparent frontrunner of the sector that everyone wants to invest in, a growing list of smaller rocket, satellite, and space infrastructure companies are available on the public market. The space industry is in the midst of an overall transition. Over the past decade, there has been an explosion of younger companies beginning to try and turn a profit in a field that used to generate most of its revenue through military contracts or high-priced communications satellites. However, that has changed in the past few years, as many new companies have launched themselves into the space race.
The Future of Space Satellites
Most space companies you would typically think of earn money building parts for rockets and selling them to NASA. While both Boeing and Lockheed Martin have human spaceflight legacies, Virgin Galactic is the first publicly traded company to concentrate on flying humans into space as a core business. Virgin Galactic is the highest-profile stock in the space tourism industry, which has not flown a space tourism passenger on suborbital missions.