NVIDIA Corporation (NVDA)vs RKLB Holdings, Inc. (RKLB)

Quick verdict

NVIDIA (NVDA) and RKLB Holdings (RKLB) sit in different sectors and show contrasting profiles across the supplied data. NVDA trades at a trailing P/E of 30.92 but a forward P/E of just 10.38, alongside a PEG of 0.28, reflecting analyst expectations of substantial earnings growth. RKLB trades at a higher trailing P/E of 37.73 and forward P/E of 29, with a PEG of 2.12. NVDA shows stronger margins (net margin 62.97% vs RKLB's 10.02%) and higher returns on capital (ROE 111.66% vs 12.55%). Overall verdict scores favour NVDA (5) over RKLB (1), with NVDA earning an A across growth, quality, balance sheet, income and momentum, versus RKLB's mixed profile. This is a factual comparison only, not investment advice.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

NVIDIA Corporation operates in the Technology sector, specifically Semiconductors, providing graphics, computational and networking solutions including GeForce GPUs for gaming, the GeForce NOW cloud service, and related infrastructure across the US, Taiwan, China and other markets. RKLB Holdings, Inc. is classified under the Consumer Defensive sector within the Beverages industry, per the supplied data. The two companies operate in fundamentally different sectors and industries, limiting direct business-model comparability. NVDA carries a market capitalisation of approximately $4.91 trillion versus RKLB's approximately $1.88 trillion. Average trading volumes also differ, with NVDA at 156.7 million shares and RKLB at 80.9 million shares. Given the divergent industries listed in the data, this comparison focuses primarily on financial metrics rather than operational overlap.

Valuation

On trailing earnings, NVDA's P/E of 30.92 is lower than RKLB's 37.73, and the gap widens on forward estimates, with NVDA's forward P/E at 10.38 versus RKLB's 29. NVDA's PEG ratio of 0.28 is markedly lower than RKLB's 2.12, suggesting NVDA's valuation is more supported by projected growth per the data. Price-to-sales is higher for NVDA at 19.38 against RKLB's 11.08, while price-to-book also favours RKLB at 10.37 versus NVDA's 25.2. EV/EBITDA stands at 25.45 for NVDA and 11.07 for RKLB. Free cash flow yield is broadly similar, at 4.34% for NVDA and 3.86% for RKLB. The valuation verdict assigned in the data is a B, reflecting this mixed picture across metrics.

Growth profile

NVDA's growth metrics substantially exceed RKLB's across the supplied figures. NVDA's 3-year revenue CAGR stands at 65.47% compared with RKLB's 18%, and over five years NVDA posted 21.13% versus RKLB's 15.12%. EPS growth shows a similar pattern: NVDA's 3-year EPS CAGR of 65.99% dwarfs RKLB's 19.98%, while the 5-year figures are 32.08% for NVDA against 14.4% for RKLB. These figures underpin the growth verdict of A assigned to NVDA in the data, with RKLB's growth being comparatively more modest though still positive across all measured periods.

Profitability and quality

NVDA demonstrates notably higher profitability across every margin metric in the data. Gross margin is comparable at 74.15% for NVDA versus 73.79% for RKLB, but the gap widens sharply further down the income statement: operating margin is 64.02% for NVDA against 27.15% for RKLB, and net margin is 62.97% versus 10.02%. Returns on capital tell a similar story, with NVDA's ROE of 111.66% and ROIC of 62.99% far exceeding RKLB's ROE of 12.55% and ROIC of 10.68%. Both companies received a quality verdict of A in the supplied data, though NVDA's underlying figures are considerably stronger.

Balance-sheet risk

NVDA holds cash of approximately $10.1 billion against total debt of approximately $69.3 billion, yielding a net debt/EBITDA ratio of -0.17, indicating net cash relative to EBITDA once other adjustments are factored in per the data. RKLB reports higher cash of approximately $51.4 billion against total debt of approximately $36.4 billion, with a net debt/EBITDA ratio of 3.63. NVDA's current ratio of 3.44 exceeds RKLB's 2.00, and NVDA's interest coverage of 27.55 is roughly double RKLB's 13.58. Both metrics point to NVDA carrying a relatively stronger balance sheet position by these measures, consistent with the balance sheet verdict of A assigned to both in the data.

Price performance and shareholder returns

Recent performance diverges considerably. NVDA's one-year return stands at 75.11% versus RKLB's 15.21%, while year-to-date, NVDA is up 2.83% against RKLB's 8.09%. Over three years, NVDA's annualised return of 3.02% trails RKLB's 21.56%, though over five years, NVDA's annualised 32.41% outpaces RKLB's 29.98%. Volatility also differs: NVDA carries a beta of 2.211 versus RKLB's 1.81, and maximum five-year drawdown is -29.43% for NVDA compared with a steeper -68.99% for RKLB. Both are labelled with a momentum verdict of A in the supplied data despite these differing return profiles over varying time horizons.

Which stock fits which investor

Based on the supplied verdicts, NVDA carries an overall score of 5 compared with RKLB's score of 1, and is tagged as 'high-growth, value', while RKLB is tagged 'high-volatility'. The data identifies RKLB as best suited for value-oriented considerations, while NVDA is flagged as best for growth, income and quality-focused profiles. Investors weighing metrics like PEG (0.28 for NVDA versus 2.12 for RKLB), margins, and balance sheet strength may find NVDA's figures more favourable across most categories in this dataset, while RKLB's lower price-to-book of 10.37 and lower EV/EBITDA of 11.07 may appeal to those prioritising traditional valuation multiples. This is descriptive only and not a recommendation.

• Value: RKLB
• Growth: NVDA
• Income: NVDA
• Quality: NVDA

Frequently asked questions

Which company shows stronger revenue growth in the data?

NVDA shows stronger revenue growth, with a 3-year revenue CAGR of 65.47% and 5-year CAGR of 21.13%, compared with RKLB's 18% and 15.12% respectively.

Which stock has a lower forward P/E ratio?

NVDA has a lower forward P/E of 10.38 compared with RKLB's forward P/E of 29, according to the supplied data.

How do the two companies compare on profitability margins?

NVDA reports a net margin of 62.97% and operating margin of 64.02%, both substantially higher than RKLB's net margin of 10.02% and operating margin of 27.15%.

Which stock has experienced a larger maximum drawdown over five years?

RKLB has experienced a larger maximum five-year drawdown of -68.99%, compared with NVDA's -29.43%, per the supplied data.

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