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

Investors today face a choice between the storied legacy of GE Aerospace (NYSE:GE) and the revolutionary momentum of Space Exploration Technologies(NASDAQ:SPCX). Which of these industrial giants is the better buy?

GE Aerospace focuses on commercial and military propulsion as a pure-play aerospace leader. Meanwhile, Space Exploration Technologies, commonly known as SpaceX, provides launch services and global broadband connectivity. They represent different eras of engineering excellence and market dominance.

The case for GE Aerospace

GE Aerospace is a global leader in propulsion, services, and systems. It serves commercial, military, and business aviation customers. Its installed base includes more than 44,000 commercial and 26,000 military aircraft engines. This massive footprint provides a steady stream of high-margin services and parts revenue. By focusing exclusively on aerospace, the company aims to capitalize on the long-term growth of global air travel. The business was split from the old General Electric in 2024, when that company separated into three publicly traded businesses.

In FY 2025, revenue reached about $45.9 billion. This represented an 18.5% increase over the prior year. The company reported net income of approximately $8.7 billion. This resulted in a net margin of 19%. Net margin measures how much profit a company keeps for every dollar of revenue. This performance highlights a solid level of profitability compared to previous fiscal years.

As of its December 2025 balance sheet, the debt-to-equity ratio was around 1.1x. This ratio shows the relationship between total debt and the money invested by shareholders. The current ratio stood at roughly 1.0x. This metric compares current assets to current liabilities to assess short-term liquidity. Free cash flow was nearly $7.3 billion. Free cash flow is the cash left over after paying for operating costs and equipment.

The case for Space Exploration Technologies

SpaceX designs and operates advanced rockets and spacecraft. It is a major player among industrial stocks, serving both government and commercial clients. The company also operates Starlink, a satellite internet constellation with over 10.3 million subscribers. This segment aims to provide high-speed internet to remote regions worldwide. Its reusable rocket technology significantly lowers the cost of reaching orbit.

In FY 2025, revenue reached nearly $18.7 billion. This was a 33% increase from the prior year. However, the company reported a net loss of approximately $4.9 billion. This resulted in a net margin of negative 26.4%. While revenue growth is strong, the company continues to spend heavily on its satellite infrastructure and rocket development. This reflects the high costs of scaling a global network.

Based on its December 2025 balance sheet, the debt-to-equity ratio was roughly 0.6x. This indicates a lower level of debt relative to shareholder equity than its competitor. Its so-called current ratio was approximately 1.4x, suggesting a healthy ability to meet short-term obligations. Free cash flow was a loss of nearly $14.0 billion. Note that stock-based compensation (SBC) represented roughly 28.7% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparison

GE Aerospace faces risks from cyclical downturns in the commercial aviation market. If airlines reduce orders for new planes, the company may see lower demand for its engines. Regulatory changes in aviation safety also present ongoing compliance costs. Furthermore, competition from other engine manufacturers could pressure market share over time. Geopolitical tensions can impact military contracts and international supply chains as well.

SpaceX operates in a high-risk industry where a single launch failure can cause significant financial and reputational damage. The company requires massive amounts of capital to maintain its satellite constellation and develop new launch vehicles. Regulatory hurdles regarding satellite spectrum and launch permits also create uncertainty. Additionally, global competition in satellite broadband is increasing. The success of its long-term goals depends on continued technological breakthroughs and favorable government policies.

Valuation comparison

GE Aerospace appears much cheaper based on earnings multiples, while SpaceX carries a massive premium due to its growth potential in the space economy. The Forward P/E ratio compares a price to future earnings estimates, while the P/S ratio measures market cap divided by sales over the past twelve months.

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

Which stock would I buy in 2026

The success of Tesla Inc (NASDAQ:TSLA) has made founder Elon Musk the richest man in the world and raised expectations that he can make an even greater fortune from SpaceX. The business certainly has market support behind it, raising the world's largest IPO, $85.7 billion this year.

SpaceX's various businesses intend to leverage the company's core launch capabilities, starting with reusable rockets. The ability to reuse boosters significantly lowers per-launch costs and spreads fixed manufacturing costs across multiple missions. Expectations are that scaling up will happen quickly, with Wall Street analysts projecting $39 billion in sales for fiscal 2026, a much lower net loss of around $1.6 billion, and profitability in 2027.

The lack of free cash flow appears to be crushing; projections indicate free cash flow will be negative $28 billion this year, then jump to negative $67 billion in 2027.

GE Aerospace, meanwhile, is the market leader in aircraft engines, boasting the most installed engines on planes. 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 Co (NYSE:BA), 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 expected to grow more than 18% to $52.3 billion, though net income is likely to lag that pace, growing 5% to $9.1 billion.

SpaceX commands a premium in the market, but the fact is it has no real stranglehold on any sector it participates in: there are very real competitors in space-based cell networks, payload launches into orbit and beyond, and in other space infrastructure businesses. GE Aerospace comes at a much more reasonable valuation and arguably plays a much more important role in the American economy and defense industry, meaning there are long-term incentives for the U.S. government to make sure the business succeeds. Long-term investors would do better buying GE Aerospace than taking a flyer on the moonshot that is SpaceX stock.

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