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GE vs. RTX: Which Stock Offers the More Compelling Investment Case?
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Key Takeaways
GE Aerospace benefits from engine demand, defense contracts and over $1 billion in planned MRO investments.
RTX's organic sales rose 12% in Q3 2026, with double-digit growth across all three business segments.
GE's 2026 sales and EPS growth estimates top RTX, while GE shares fell 9.3% and RTX gained 1%.
GE Aerospace (GE - Free Report) and RTX Corporation (RTX - Free Report) are two key players operating in the aerospace and defense industry. Both companies are engaged in producing highly engineered aircraft components for commercial and military aircraft in the United States and globally.
Both companies are benefiting from growth opportunities in the aerospace and defense space, driven by improving air traffic trends and an expansionary U.S. defense budget in recent years. But which of these two stocks is better positioned to benefit from these trends? Let’s compare their fundamentals to find out.
The Case for GE Aerospace
GE Aerospace is gaining from a growing installed base and higher utilization of engine platforms, driven by sustained demand across commercial & defense sectors. Increased demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is proving beneficial for GE’s Commercial Engines & Services segment. In the first nine months of 2026, the company secured several major engine orders and service agreements. GE Aerospace secured GEnx engine orders from United Airlines and Delta Air Lines for their Boeing 787 Dreamliners, while it secured LEAP engine orders from American Airlines and Copa Airlines for their narrowbody fleet. GE also signed a long-term materials agreement to support Ryanair's fleet of approximately 2,000 CFM56 and LEAP engines.
Growing demand for the company’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector is augmenting the Defense & Propulsion Technologies segment’s performance. In the first nine months of 2026, the company secured a contract from Naval Air Systems Command (NAVAIR) to supply T408-GE-400 engines for the U.S. Marine Corps’ Sikorsky CH-53K King Stallion helicopters. GE secured a five-year contract worth up to $2.9 billion to provide ongoing support for the F414 engines that power the U.S. Navy's F/A-18 and EA-18G aircraft fleet. It received a contract from Turkish Aerospace Industries (“TAI”) to continue integrating its F404 engine into Türkiye's Hurjet jet trainer. The company also clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet in the same period. In 2025, it secured a $5 billion contract from the U.S. Air Force to supply F110 engines, parts and support services under a Foreign Military Sales (FMS) program. Also, GE Aerospace received an Indefinite Delivery Indefinite Quantity (IDIQ) contract from the U.S. Air Force to supply F110 engines for F-15 and F-16 jets used by allied countries.
GE Aerospace continues to invest in initiatives aimed at strengthening its growth prospects. The company plans to invest more than $1 billion in its maintenance, repair and overhaul (MRO) facilities worldwide over the next five years. This includes about $500 million for a dedicated LEAP test cell to ease a key bottleneck and increase shop visit capacity. GE Aerospace is also expanding several MRO facilities, including those in Dallas, Malaysia and Celma, while establishing a new on-wing support site in Dubai.
GE Aerospace’s continued commitment to shareholder returns is encouraging. During the first nine months of 2026, the company repurchased $6.51 billion worth of shares and paid $1.36 billion in dividends, up from $5.55 billion and $1.07 billion, respectively, in the year-ago period.
The Case for RTX
RTX is benefiting from steady recovery in commercial aerospace, strong defense orders and a robust backlog. Strategic investments in manufacturing, defense contracts and next-generation engine development are supporting growth across its aerospace and defense businesses. In the third quarter of 2026, the company’s organic sales advanced 12% year over year, fueled by double-digit gains in all three segments.
Collins Aerospace reported 10% year-over-year sales growth, supported by a 23% increase in commercial OE sales, a 9% rise in commercial aftermarket revenues and 7% growth in defense sales. Pratt & Whitney’s sales rose 10%, backed by a 21% increase in commercial aftermarket sales. Raytheon’s sales increased 14% year over year to $8.03 billion, driven by higher volumes across naval programs and land and air defense systems.
In October 2026, RTX’s Pratt & Whitney segment announced a $100 million investment to expand its Rzeszów facility in Poland, boosting production of critical components for GTF, F135 and F100 engines. The facility is expected to become operational in 2028 and create more than 120 jobs.
During the month, Raytheon UK secured contracts to supply the Swedish military with Landshield and Landshield Plus GPS anti-jamming systems, enhancing navigation reliability against electronic warfare threats.
Pratt & Whitney Canada unveiled a new turboprop engine that delivers 33% more power at altitude and reduces fuel consumption by 20% compared with previous-generation engines.
Price Performance
In the past month, GE Aerospace shares have declined 9.3%, while RTX stock has inched up 1%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE & RTX
The Zacks Consensus Estimate for GE’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 19.7% and 27%, respectively. EPS estimates for both 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 sales and EPS implies year-over-year growth of 8.5% and 19.2%, respectively. The EPS estimates for 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Valuation of GE & RTX
GE is trading at a forward 12-month price-to-earnings ratio of 31.81X, close to its median of 35.79X over the last five years. RTX’s forward earnings multiple sits at 25.03X, lower than its median of 19.27X over the same time frame.
Image Source: Zacks Investment Research
Final Take
GE Aerospace’s strong momentum in the commercial and defense aerospace markets, driven by robust demand for LEAP, GEnx and GE9X engines, major engine orders and long-term service agreements, bodes well for growth. Continued investments in MRO facilities, a strong defense contract pipeline and increased shareholder returns through dividends and share repurchases further support its growth prospects.
In contrast, RTX’s strength in commercial aerospace and defense markets, supported by solid sales growth across Collins Aerospace, Pratt & Whitney and Raytheon, robust aftermarket demand and strategic investments in engine production, favors its growth prospects.
RTX’s lower forward valuation relative to its five-year median makes it relatively attractive based on this metric, while GE Aerospace trades below its own five-year median valuation. RTX outperformed GE over the past month, reflecting stronger investor confidence. Both companies currently carry a Zacks Rank #2 (Buy).
View the Zacks #1 Rank List
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GE vs. RTX: Which Stock Offers the More Compelling Investment Case?
Key Takeaways
GE Aerospace (GE - Free Report) and RTX Corporation (RTX - Free Report) are two key players operating in the aerospace and defense industry. Both companies are engaged in producing highly engineered aircraft components for commercial and military aircraft in the United States and globally.
Both companies are benefiting from growth opportunities in the aerospace and defense space, driven by improving air traffic trends and an expansionary U.S. defense budget in recent years. But which of these two stocks is better positioned to benefit from these trends? Let’s compare their fundamentals to find out.
The Case for GE Aerospace
GE Aerospace is gaining from a growing installed base and higher utilization of engine platforms, driven by sustained demand across commercial & defense sectors. Increased demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is proving beneficial for GE’s Commercial Engines & Services segment. In the first nine months of 2026, the company secured several major engine orders and service agreements. GE Aerospace secured GEnx engine orders from United Airlines and Delta Air Lines for their Boeing 787 Dreamliners, while it secured LEAP engine orders from American Airlines and Copa Airlines for their narrowbody fleet. GE also signed a long-term materials agreement to support Ryanair's fleet of approximately 2,000 CFM56 and LEAP engines.
Growing demand for the company’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector is augmenting the Defense & Propulsion Technologies segment’s performance. In the first nine months of 2026, the company secured a contract from Naval Air Systems Command (NAVAIR) to supply T408-GE-400 engines for the U.S. Marine Corps’ Sikorsky CH-53K King Stallion helicopters. GE secured a five-year contract worth up to $2.9 billion to provide ongoing support for the F414 engines that power the U.S. Navy's F/A-18 and EA-18G aircraft fleet. It received a contract from Turkish Aerospace Industries (“TAI”) to continue integrating its F404 engine into Türkiye's Hurjet jet trainer. The company also clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet in the same period. In 2025, it secured a $5 billion contract from the U.S. Air Force to supply F110 engines, parts and support services under a Foreign Military Sales (FMS) program. Also, GE Aerospace received an Indefinite Delivery Indefinite Quantity (IDIQ) contract from the U.S. Air Force to supply F110 engines for F-15 and F-16 jets used by allied countries.
GE Aerospace continues to invest in initiatives aimed at strengthening its growth prospects. The company plans to invest more than $1 billion in its maintenance, repair and overhaul (MRO) facilities worldwide over the next five years. This includes about $500 million for a dedicated LEAP test cell to ease a key bottleneck and increase shop visit capacity. GE Aerospace is also expanding several MRO facilities, including those in Dallas, Malaysia and Celma, while establishing a new on-wing support site in Dubai.
GE Aerospace’s continued commitment to shareholder returns is encouraging. During the first nine months of 2026, the company repurchased $6.51 billion worth of shares and paid $1.36 billion in dividends, up from $5.55 billion and $1.07 billion, respectively, in the year-ago period.
The Case for RTX
RTX is benefiting from steady recovery in commercial aerospace, strong defense orders and a robust backlog. Strategic investments in manufacturing, defense contracts and next-generation engine development are supporting growth across its aerospace and defense businesses. In the third quarter of 2026, the company’s organic sales advanced 12% year over year, fueled by double-digit gains in all three segments.
Collins Aerospace reported 10% year-over-year sales growth, supported by a 23% increase in commercial OE sales, a 9% rise in commercial aftermarket revenues and 7% growth in defense sales. Pratt & Whitney’s sales rose 10%, backed by a 21% increase in commercial aftermarket sales. Raytheon’s sales increased 14% year over year to $8.03 billion, driven by higher volumes across naval programs and land and air defense systems.
In October 2026, RTX’s Pratt & Whitney segment announced a $100 million investment to expand its Rzeszów facility in Poland, boosting production of critical components for GTF, F135 and F100 engines. The facility is expected to become operational in 2028 and create more than 120 jobs.
During the month, Raytheon UK secured contracts to supply the Swedish military with Landshield and Landshield Plus GPS anti-jamming systems, enhancing navigation reliability against electronic warfare threats.
Pratt & Whitney Canada unveiled a new turboprop engine that delivers 33% more power at altitude and reduces fuel consumption by 20% compared with previous-generation engines.
Price Performance
In the past month, GE Aerospace shares have declined 9.3%, while RTX stock has inched up 1%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE & RTX
The Zacks Consensus Estimate for GE’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 19.7% and 27%, respectively. EPS estimates for both 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 sales and EPS implies year-over-year growth of 8.5% and 19.2%, respectively. The EPS estimates for 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Valuation of GE & RTX
GE is trading at a forward 12-month price-to-earnings ratio of 31.81X, close to its median of 35.79X over the last five years. RTX’s forward earnings multiple sits at 25.03X, lower than its median of 19.27X over the same time frame.
Image Source: Zacks Investment Research
Final Take
GE Aerospace’s strong momentum in the commercial and defense aerospace markets, driven by robust demand for LEAP, GEnx and GE9X engines, major engine orders and long-term service agreements, bodes well for growth. Continued investments in MRO facilities, a strong defense contract pipeline and increased shareholder returns through dividends and share repurchases further support its growth prospects.
In contrast, RTX’s strength in commercial aerospace and defense markets, supported by solid sales growth across Collins Aerospace, Pratt & Whitney and Raytheon, robust aftermarket demand and strategic investments in engine production, favors its growth prospects.
RTX’s lower forward valuation relative to its five-year median makes it relatively attractive based on this metric, while GE Aerospace trades below its own five-year median valuation. RTX outperformed GE over the past month, reflecting stronger investor confidence. Both companies currently carry a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.