HEI vs GE

For growth investors, GE Aerospace (GE) is the stronger pick with 18.

5% revenue growth year-over-year, versus 16. 3% for HEICO Corporation (HEI). GE Aerospace (GE) offers the better valuation at 37. 5x trailing P/E (40. 4x forward), making it the more compelling value choice. Analysts rate HEICO Corporation (HEI) a "Buy" — based on 34 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, GE Aerospace (GE) is the cheapest at 37.

5x versus HEICO Corporation at 60. 5x. On forward P/E, GE Aerospace is actually cheaper at 40. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: HEICO Corporation wins at 3. 21x versus GE Aerospace's 3. 42x.

Over the past 5 years, GE Aerospace (GE) delivered a total return of +370.

5%, compared to +115. 4% for HEICO Corporation (HEI). Over 10 years, the gap is even starker: HEI returned +842. 3% versus GE's +121. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), HEICO Corporation (HEI) is the lower-risk stock at 1.

04β versus GE Aerospace's 1. 14β — meaning GE is approximately 10% more volatile than HEI relative to the S&P 500. On balance sheet safety, HEICO Corporation (HEI) carries a lower debt/equity ratio of 50% versus 108% for GE Aerospace — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), GE Aerospace (GE) is pulling ahead at 18.

5% versus 16. 3% for HEICO Corporation (HEI). On earnings-per-share growth, the picture is similar: GE Aerospace grew EPS 36. 2% year-over-year, compared to 33. 5% for HEICO Corporation. Over a 3-year CAGR, HEI leads at 26. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

GE Aerospace (GE) is the more profitable company, earning 19.

0% net margin versus 15. 4% for HEICO Corporation — meaning it keeps 19. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HEI leads at 22. 7% versus 19. 1% for GE. At the gross margin level — before operating expenses — HEI leads at 39. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, HEICO Corporation (HEI) is the more undervalued stock at a PEG of 3. 21x versus GE Aerospace's 3. 42x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, GE Aerospace (GE) trades at 40. 4x forward P/E versus 52. 8x for HEICO Corporation — 12. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GE: 26. 3% to $386. 20.

In this comparison, GE (0.

4% yield) pays a dividend. HEI does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, HEICO Corporation (HEI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

04), +842. 3% 10Y return). Both have compounded well over 10 years (HEI: +842. 3%, GE: +121. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.