Which Space Stock Deserves Your Portfolio Attention? Comparing the Real Opportunities in Lunar and Defense Markets

The Space Economy Is Heating Up, But Not All Players Are Equal

The burgeoning space economy has captured investor attention, with companies like Intuitive Machines (NASDAQ: LUNR) experiencing remarkable gains. The stock surged over 70% in recent weeks following bullish analyst coverage, riding momentum from the company’s successful lunar lander mission last February—America’s first moon landing in over half a century since Apollo 17.

Yet beneath the moonlight quotes that celebrate these achievements, a more nuanced investment picture emerges. While Intuitive Machines has secured its place in space history, another contender offers a more compelling combination of lunar ambitions and defense sector exposure that could better position investors for sustained growth.

Beyond the Hype: Understanding Intuitive Machines’ Strategy

Intuitive Machines has rightfully earned recognition for advancing lunar operations. The company designs and manufactures lunar landers for NASA and is pursuing multiple space initiatives beyond Earth’s orbit. Its Odysseus Nova-C class lander demonstrated real technological capability—no small feat in an industry where execution matters more than promises.

However, recent performance tells only part of the story. The company’s defense industry presence, while notable, remains underdeveloped compared to emerging competitors. For investors seeking broader exposure to both the lunar economy and aerospace-defense convergence, this presents a gap.

The Alternative: A Balanced Bet on Space and Defense

Enter Firefly Aerospace (NASDAQ: FLY), which went public just this August. Though less recognized than its counterpart, Firefly is building a more diversified business model that spans two high-growth sectors simultaneously.

On the lunar front, Firefly matches Intuitive Machines’ commitment. The company’s Blue Ghost lander is scheduled for regular lunar missions, and in Q3 2025, NASA awarded Firefly a $176.7 million contract under its Commercial Lunar Payload Services program to deliver five payloads to the moon’s south pole by 2029. This represents validated demand and government confidence in the company’s capabilities.

What distinguishes Firefly, though, is its aggressive defense expansion. In October, the company closed an $855 million acquisition of SciTec, a defense technologies specialist in space domain awareness and missile defense systems—a strategic move that instantly scaled its defense operations. Most recently, in November, Firefly partnered with Kratos Defense & Security Solutions to develop hypersonic capabilities, further cementing its position at the intersection of space and defense innovation.

Comparing the Investment Case

Intuitive Machines has momentum, proven engineering success, and NASA contracts. Yet it remains primarily a space-focused play with emerging defense exposure.

Firefly Aerospace offers something different: a dual revenue stream in both lunar operations and defense technologies, with recent acquisitions and partnerships that suggest serious infrastructure for sustained growth. Notably, despite these strategic advances, Firefly’s stock has declined more than 42% since its August IPO debut—presenting what contrarian investors might view as a capitulation-induced opportunity.

When weighing these two competitors, the choice hinges on what exposure you’re seeking: Intuitive Machines for pure-play space exposure, or Firefly for investors who want broader diversification across the space-defense nexus that’s reshaping aerospace investment fundamentals.

The lunar ambitions are real in both cases. The question for your portfolio is which execution model offers better downside protection and upside potential as these markets mature.