Boeing vs. GE Aerospace: Which U.S. Industrial Giant's Stock Is a Better Buy in 2026?

Are you looking for an aerospace turnaround or a steady propulsion leader? Choosing between Boeing Co. (NYSE:BA) and GE Aerospace (NYSE:GE) requires weighing massive order backlogs against operational hurdles and balance sheet strength.

Boeing remains a primary airframe manufacturer for the global aviation market, while GE Aerospace dominates the commercial and military engine segments. They are often compared because they share the same end-market cycles and major airline customers. Investors often look at these two to gauge the health of the broader aviation market.

The case for Boeing Co.

Boeing designs and manufactures commercial airplanes and serves as a major player among defense stocks through its defense and space segments. It generates significant revenue from the U.S. government, including the Department of Defense and NASA, as well as global commercial airlines. Customer concentration like this adds a layer of risk to the business, especially given that many commercial aircraft contracts are long-term and include price escalation clauses.

In its latest annual report, filed for FY 2025, Boeing reported revenue of about $89.5 billion, which represented growth of approximately 35% compared to the prior year. The company achieved a net income of around to $2.2 billion for the period. This resulted in a net margin, which measures the percentage of revenue remaining after all expenses, of roughly 3%.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 10x, meaning total debt was 10 times shareholders' equity. Its current ratio, which measures the ability to pay short-term debts with short-term assets, was nearly 1.2x. Free cash flow, which equals cash flow from operations minus capital expenditures, was approximately negative $1.9 billion, and note that stock-based compensation (SBC) represented roughly 40% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

The case for GE Aerospace

GE Aerospace focuses on propulsion, services, and systems for both commercial and military aviation customers. The business has a massive installed base of more than 44,000 commercial engines and over 26,000 military engines worldwide. Its primary customers include a broad range of global airlines and military organizations that operate under strict regulatory and export control environments.

During FY 2025, GE Aerospace generated revenue of approximately $46 billion, growth of nearly 19% over the previous fiscal year. The company reported a net income of roughly $8.7 billion for the same period. Its net margin was approximately 19%, showing the percentage of sales converted into profit.

Based on its December 2025 balance sheet, the debt-to-equity ratio was nearly 1.1x. The company's current ratio was approximately 1.0x, indicating that its short-term assets roughly equal its short-term liabilities. Free cash flow, which is cash flow from operations minus capital expenditures, was approximately $7.3 billion.

Risk profile comparison

Boeing faces significant operational risks from the ongoing integration of Spirit AeroSystems, where additional undisclosed liabilities have been discovered post-acquisition. The company also deals with financial risks from fixed-price contracts in its defense and space segments that have historically led to multi-billion dollar losses. Certification delays for the 777X and geopolitical trade tensions with China further complicate its delivery schedules and market access.

GE Aerospace deals with regulatory risks, recently settling for nearly $36 million with the U.S. Department of State over export control violations involving sensitive defense data. It also faces ongoing litigation and operational challenges as a pure-play aerospace entity following its corporate restructuring. The company competes with major rivals like RTX (NYSE:RTX) and Airbus (OTC:EADSF) for engine contracts and long-term service agreements.

Valuation comparison

GE Aerospace appears to be the more attractively valued option based on its significantly stronger cash flow profile and lower earnings multiple relative to growth.

The Forward P/E ratio compares the current stock price to future earnings estimates for the next year. The P/S ratio measures a company's market value relative to its sales over the past twelve months.

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

Which stock would I buy in 2026?

Boeing is still working to recover from safety and supply chain issues that have recently dogged the business. 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. Boeing can expect long-term growth from the air superiority fighter, the F-47, it is developing to replace the F-22.

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.

GE Aerospace is firing on all cylinders, and while its P/S ratio is higher than Boeing's, its more reasonable forward P/E puts the business in relative value territory, compared to its aerospace brethren. GE Aerospace is the better buy right now.

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.