GE Aerospace vs. SpaceX: Which Flight Giant's Stock Is a Better Buy for 2027?

The race to the skies is evolving as legacy aviation giants meet private space pioneers. Deciding between GE Aerospace (NYSE:GE) and Space Exploration Technologies Corp. (NASDAQ:SPCX) depends on your appetite for growth versus stability.

GE Aerospace focuses on the core machinery of flight, powering thousands of commercial and military aircraft worldwide. Space Exploration Technologies, colloquially known as SpaceX, aims to revolutionize orbital access and global connectivity. Both companies lead their respective aerospace markets but offer vastly different financial profiles for investors looking toward 2027.

The case for GE Aerospace

GE Aerospace specializes in the machinery of flight, making it a prominent name among industrial stocks and commercial manufacturers. It designs, manufactures, and services a massive installed base of roughly 50,000 commercial and 30,000 military engines worldwide. The company generates steady, recurring revenue through its extensive global service network, which has maintained these critical aviation units for many decades.

In its latest annual report for FY 2025, revenue reached about $45.9 billion, representing a healthy growth rate of approximately 18.5% over the previous year. The company successfully converted this growth into a reported net income of about $8.7 billion for the same fiscal period. Its P/S ratio of 6.0x compares market cap to sales over the past twelve months.

As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 1.1x while its current ratio, which compares short-term assets to liabilities, is close to 1.0x. GE Aerospace generated free cash flow of approximately $7.3 billion in FY 2025, representing cash from operations minus capital expenditures. This cash generation allows the company to support dividend payments and research into next-generation engine technology.

The case for Space Exploration Technologies

Space Exploration Technologies designs and launches advanced rockets while operating the expansive Starlink satellite connectivity network. Starlink now serves over 10 million subscribers globally, providing high-speed internet access to 164 different countries and territories. The company leverages its own vertically integrated launch capabilities to deploy its satellite fleet more frequently and cost-effectively than any of its competitors.

In FY 2025, revenue reached about $18.7 billion, which marks a significant jump of more than 33.2% compared to the prior fiscal year. Despite this rapid revenue growth, the company reported a net loss of around $4.9 billion as it prioritized long-term infrastructure investments. This resulted in a negative net margin of approximately 26.4% while it invested heavily in the Starship launch vehicle and its satellite constellation.

The company maintained a debt-to-equity ratio of roughly 0.6x as of its December 2025 balance sheet, while its current ratio of 1.4x suggests a cushion for meeting short-term obligations. Free cash flow was a negative $14.0 billion in FY 2025, calculated as cash from operations minus capital expenditures. Note that stock-based compensation (SBC) accounted for roughly 28.7% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparison

GE Aerospace faces risks related to the cyclical nature of the commercial aviation market. Any downturn in global travel could reduce demand for new engines and maintenance services. The company must also navigate complex geopolitical tensions that impact its defense contracts and international supply chains.

Space Exploration Technologies operates in a highly capital-intensive industry where launch failures can cause significant financial and reputational damage. The company also faces intense regulatory scrutiny regarding its satellite launches and orbital debris. Competition in the satellite internet space is increasing as rival companies develop their own orbital networks.

Valuation comparison

GE Aerospace trades at a much lower Forward P/E than Space Exploration Technologies, which carries a triple-digit multiple on its future earnings estimates. This ratio helps you see how much you are paying for every dollar of projected profit.

Metric	GE Aerospace	Space Exploration Technologies
Forward P/E	37.0x	709.1x
P/S ratio	6.0x	n/a

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

Which stock would I buy for 2027?

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 quickly will happen, with Wall Street analysts projecting $48.9 billion in sales for fiscal 2026, and a swing to profitability, with $2.8 billion net income projected.

The lack of free cash flow appears to be crushing; projections indicate free cash flow will be negative $56.6 billion this year, then jump to negative $148 billion in 2027.

Still, 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.

Space has a very real business in Starlink, which mitigates the possibility that grander plans won't come to fruition.

Meanwhile, 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 The 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.

The choice here isn’t obvious. SpaceX has the buzz, but it has no monopoly in any of its business areas, with quite capable competitors in rocket launches, cellular networks, and space cargo transport. GE Aerospace is a critical U.S. industrial giant, and it comes at far more reasonable valuation ratios. The choice for long-term investors is GE Aerospace.

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.