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

As global travel continues its post-pandemic ascent, investors are weighing the recovery of an aviation titan against a leaner engine specialist. Choosing between Boeing (NYSE:BA) and GE Aerospace (NYSE:GE) requires careful scrutiny.

Boeing remains a global leader in commercial aircraft manufacturing and defense systems, while GE Aerospace has transformed into a focused aerospace power. Both companies benefit from rising demand for efficient travel, yet they offer vastly different financial health and risk profiles.

The case for Boeing

Boeing develops and services commercial airplanes, defense products, and space systems for customers in over 150 countries. The company derives a significant portion of its revenue from the U.S. government, including the Department of Defense and NASA. Customer concentration like this adds a layer of risk to the business, particularly when specialized contracts are subject to shifting federal budget priorities.

In FY 2025, revenue reached nearly $89.5 billion, representing a significant 34.5% increase over the prior year. This growth helped the company report a net income of approximately $2.2 billion, which is a notable improvement from the net loss of roughly $11.8 billion in 2024. The turnaround suggests that production rates for major programs are beginning to stabilize after several years of operational disruptions.

As of its December 2025 balance sheet, the debt-to-equity ratio was 10.0x. This high figure indicates that total liabilities are ten times the value of shareholder equity. The current ratio, which indicates a company's ability to pay short-term obligations with short-term assets, was nearly 1.2x. Free cash flow was negative $1.9 billion, and stock-based compensation 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

General Electric now operates primarily as GE Aerospace, a dominant force in aircraft propulsion and systems for commercial and military aviation. It maintains an installed base of more than 44,000 commercial engines and 26,000 military engines worldwide. By focusing on high-margin services and parts, the company aims for steady performance among defense stocks and commercial airline providers.

In FY 2025, revenue reached approximately $45.9 billion, a growth of roughly 18.5% compared to the previous fiscal year. The company reported a strong net income of nearly $8.7 billion for the period. Its net margin, which is the percentage of revenue remaining as profit after all expenses, stood at a healthy 19%, reflecting the profitability of its specialized aerospace services.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 1.1x. This indicates a much lower level of debt relative to equity compared to its primary peer in the skies. The current ratio was roughly 1.0x, showing assets and liabilities are closely matched in the short term. Free cash flow, which is cash from operations minus capital expenditures, was a robust $7.3 billion.

Risk profile comparison

Boeing faces persistent operational and production challenges, including certification and delivery delays for key programs like the 777X and 737 variants. Heavy reliance on the U.S. government makes it vulnerable to budget curtailments and shifts in acquisition strategies. Furthermore, labor instability and cybersecurity threats against its complex infrastructure could disrupt future manufacturing schedules or compromise proprietary data.

GE Aerospace must navigate intense competition in the aerospace sector from rivals like RTX (NYSE:RTX) and Airbus (OTC:EADSF). While its engine service business is a steady cash generator, the company remains sensitive to fluctuations in global airline health and military spending. It also faces pressure to innovate rapidly to keep pace with advanced systems developed by Lockheed Martin (NYSE:LMT) in the defense arena.

Valuation comparison

Boeing appears cheaper on a sales basis, while GE Aerospace carries a lower premium relative to its future earnings estimates.

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

Which stock would I buy in 2026?

I'd go with GE Aerospace, and the contrast between these two companies right now is striking. GE just posted record revenue, raised its full-year outlook, and is generating substantial free cash flow while returning billions to shareholders. Its LEAP engine powers a growing installed base of commercial aircraft, and the aftermarket services business keeps compounding as that fleet expands. This is a business operating at full stride.

Boeing, to its credit, is making genuine progress. Commercial deliveries rose sharply year over year and free cash flow turned positive and beat expectations by a wide margin. The FAA recently restored its authority to self-certify aircraft, which is a significant regulatory milestone. But Boeing is still losing money every quarter, carrying an enormous debt load, and managing a defense segment that keeps absorbing unexpected charges. The turnaround is underway, but it is not finished.

The turnaround story at Boeing is encouraging, but I'm choosing GE Aerospace because it doesn't need a turnaround. It is already winning.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, GE Aerospace, Lockheed Martin, and RTX. The Motley Fool has a disclosure policy.