GE Aerospace vs Rolls-Royce shares: which is the better growth stock?

I’ve owned Rolls-Royce (LSE:RR) shares since mid-2023, adding on two further occasions in 2024 and 2025. The FTSE 100 stock is up substantially over this period, even after a recent blip.

Yet Rolls-Royce isn’t the only engine maker that’s flown higher. Shares of rival GE Aerospace (NYSE:GE) have soared 537% in the past four years!

The question I’m asking here is, which is the best growth stock? Here’s my take.

Jet engine giants

Unlike Rolls-Royce, GE Aerospace’s engines are on both narrowbody (single-aisle) and widebody (twin-aisle) aircraft. Indeed, three of every four commercial flights are powered by GE or one of its joint ventures.

That’s almost 1m people flying via the firm’s technology at any moment! So it won’t come as a shock that the S&P 500 company is larger than Rolls-Royce.

Which company is growing faster?

While Rolls-Royce is smaller, GE is certainly no slouch on the growth front. In the first nine months of 2026, adjusted revenue jumped 23% to $37.5bn, with operating profit up 22% to $8.3bn. Adjusted earnings per share (EPS) increased 28% to $6.13.

The bulk of revenues — and certainly profits — come from its Commercial Engines & Services division. Similar to Rolls-Royce’s Civil Aerospace unit, this makes, sells and services engines for passenger and freight aircraft. In Q3, orders were up 58% (to $15.3bn) while the Defense & Propulsion Technologies division saw orders rise 18% ($4.3bn).

Turning to Rolls-Royce, we see similar strong growth. In the first six months of 2026, underlying revenue increased 25% to £11.3bn, with operating profit growing faster at 46% (£2.5bn).

Overall, the FTSE 100 company is growing profits at a quicker rate. This is due to CEO Tufan Erginbilgic’s aggressive transformation programme that’s driving margin expansion.

Which is more profitable?

Zooming in a bit further, GE’s group-level operating margin was 21.8% in the first half. This compares to Rolls-Royce’s 22.5%, though the UK firm has a Power Systems division, whereas GE doesn’t.

If we compare the commercial engine units, then GE (26.9%) edges Rolls-Royce (25.3%). Note, however, that the US firm generates significantly more revenue from high-margin services. It has an enormous installed base of engines.

Rolls-Royce’s Defence unit is more profitable though. The firm has powered the UK’s nuclear submarine fleet for decades.

For me, there’s not much to split the companies here. Rolls-Royce has done a tremendous job closing the gap since 2023.

Which stock is cheaper?

Turning to valuation, there is quite a noticeable difference. The S&P 500 stock trades at a forward price-to-earning ratio of 37, compared with 27 for Rolls-Royce.

These premium valuations do add risk, as both companies potentially face risks to flying hours due to high fuel costs. Rolls-Royce is also less diversified in this area. Both would obviously suffer badly if another global pandemic struck.

Looking ahead, GE’s largest opportunity is the narrowbody market. Airbus anticipates global demand for 33,920 new narrowbody aircraft over the next 20 years (involving growth and the replacement of older fleets). 

Both are world-class companies and I find it hard to separate them. However, I prefer Rolls-Royce due to its cheaper valuation and wider growth opportunities powering data centres and — one day — small modular reactors (SMRs).

Of these two stocks right now, I think Rolls-Royce is worth a closer look, especially after recent weakness.

Should you invest £5,000 in Rolls-Royce Plc right now?

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Ben McPoland owns shares of Rolls-Royce.