Boeing vs. GE Aerospace: Which Aerospace Stock Is a Better Buy in 2026?

Deciding between a turnaround play and a specialized leader requires a close look at the fundamentals. We compare Boeing Co (NYSE:BA) and GE Aerospace (NYSE:GE) to see which stock fits you.

Boeing remains a primary force in the global aerospace and defense markets, while GE Aerospace was spun off from the old GE in 2024 to focus entirely on aviation engines and systems. Both companies are vital to the future of travel, yet they currently present very different financial profiles for everyday investors.

The case for Boeing

Boeing designs, manufactures, and services commercial airplanes, defense products, and space systems across 150 countries. It relies heavily on a small group of airline customers and the U.S. government, including the Department of Defense and NASA. Customer concentration like this adds a layer of risk to the business, especially as it integrates new fuselage operations following its acquisition of Spirit AeroSystems.

In FY 2025, revenue reached about $89.5 billion, representing a significant growth of approximately 34.5% compared to the previous year. This revenue surge allowed the company to report a net income of around $2.2 billion and a net margin of roughly 2.5%. This performance is a notable shift from the substantial net loss recorded during the 2024 fiscal period, indicating progress in its operational recovery.

As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 10x. This ratio, which compares total debt to shareholder equity, indicates a highly leveraged financial structure where total liabilities exceed shareholder equity. The so-called current ratio, a measure of the ability to pay short-term debts with current assets, was approximately 1.2x. Free cash flow was a negative $1.9 billion, and stock-based compensation represented roughly 40% of operating cash flow, which inflates reported cash generation.

The case for GE Aerospace

GE Aerospace is a global leader in propulsion, services, and systems for aviation. It manages a massive fleet of over 70,000 installed engines worldwide, serving both commercial airlines and military defense agencies. This specialized focus within defense stocks allows the company to concentrate resources on high-margin services and advanced turbine technology.

In FY 2025, revenue reached nearly $45.9 billion, representing roughly 18.5% year-over-year growth. The company reported a net income of approximately $8.7 billion, with a net margin of close to 19%. Net margin is a profitability metric that measures how much profit a company keeps from every dollar of sales it generates after all expenses are paid.

As of its December 2025 balance sheet, GE Aerospace maintained a debt-to-equity ratio of approximately 1.1x. This ratio, which measures total debt against shareholder equity, suggests a more balanced capital structure with lower reliance on borrowed funds. The current ratio was about 1.0x, indicating that short-term assets and liabilities are nearly equal. Free cash flow reached nearly $7.3 billion, demonstrating the company's ability to generate cash after paying for capital expenditures.

Risk profile comparison

Boeing faces operational risks stemming from its complex production system and certification delays for models such as the 777X and 737-10. The integration of Spirit AeroSystems has uncovered additional liabilities and costs that could impact financial results. Furthermore, the company faces potential work stoppages and must manage high debt levels that require consistent access to capital markets to maintain liquidity.

GE Aerospace operates in a highly competitive environment alongside major rivals like RTX Corp (NYSE:RTX) and Airbus (OTC:EADSF). It must also invest heavily in research and development to maintain its technological edge in engine propulsion. While the company is more focused than in the past, it remains sensitive to fluctuations in the global aviation market and shifts in government defense spending.

Valuation comparison

GE Aerospace is cheaper based on Forward P/E and future earnings estimates, while Boeing leads on P/S ratio using sales over the past twelve months.

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

GE Aerospace is the market leader in aircraft engines, boasting the most installed engines "under wing," in industry parlance. The company has been focusing on increasing productivity and improving its supply chain by working closely with suppliers. These efforts have meaningfully improved the availability of components for GE Aerospace, helping it meet demand and increasing sales and margins.

Business continues to be good. Management expects growth from recent awards to produce engines for the new F-47 jet from Boeing, as well as a $1.4 billion award from the U.S. Marines. It also received commercial airline awards from United Airlines Holdings Inc. (NASDAQ:UAL), American Airlines Group Inc. (NYSE:AA), and Delta Air Lines Inc. (NYSE:DAL), totaling over $1 billion.

Revenue for the current year, fiscal 2026, is seen growing more than 18% to $52.3 billion, though net income probably lags that pace, growing 5% to $9.1 billion.

Boeing is still working to recover from safety and supply chain issues. While revenue will rise about 9% to $97.7 billion this year, the company's net income will fall dramatically to around $85 million, according to consensus Wall Street analyst forecasts, hence its high forward P/E ratio.

But don't count Boeing out. It is among the largest aerospace and defense companies, giving it excellent long-term prospects due to its leading position in the growing commercial aerospace industry. In the first quarter of its current fiscal year, the order backlog rose in the double digits, setting a new record. Backlogs mean future sales are strong and show the industry believes in the business. Of course, with GE Aerospace expecting growth from the F-47, obviously Boeing can expect long-term growth from the air superiority fighter as well.

GE Aerospace is firing on all cylinders, and while it comes with a premium, as its forward P/E and P/S ratios show, it's a nice addition to any long-term investor's portfolio.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, GE Aerospace, and RTX. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.