FTAI Aviation (FTAI 0.37%) and Hexcel (HXL +1.06%) are two attractive stocks in the aviation sector, and while Hexcel looks like the better buy right now for long-term investors, they are actually complementary companies for a portfolio. Here's why.
FTAI Aviation growth prospects
The main difference is that FTAI focuses only on the aerospace aftermarket, while Hexcel's advanced composite materials are used in the original equipment market (OEM). Owning both stocks lets investors benefit when aircraft production is strong (Hexcel) and also when manufacturers like Airbus and Boeing face delays, causing airlines to use and service older planes more often (FTAI Aviation).
This "dual threat" of being relevant in both the OEM and aftermarket is part of the reason GE Aerospace (GE 0.38%), the leading engine manufacturer that sells engines under long-term service agreements (LTSA), has performed so well in recent years.
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FTAI is both a rival to GE Aerospace and arguably a business that benefits the aerospace giant. FTAI owns, leases, and sells aviation equipment. Its primary business is the maintenance and repair of aircraft engines, notably the CFM International (a GE Aerospace joint venture) CFM56 that powers the legacy Airbus A320 family and the Boeing 737s that will still be used by airlines for many years to come.
FTAI will service CFM's newer LEAP engines in the future, once GE Aerospace's LTSAs expire (usually after more than a decade). As such, FTAI both competes with GE Aerospace (for maintaining and servicing engines after the LTSA period expires) and supports its engine sales, as airlines know they can use FTAI to service engines in the future.
A hidden artificial intelligence (AI) stock
Recently, FTAI's stock has surged, far outpacing Hexcel's. This growth is mainly due to the launch of FTAI Power, which will convert CFM56 engines into power turbines for data centers to meet the growing demand for AI. It's an exciting business that builds on FTAI's strengths. It's not unusual -- GE Vernova, for example, makes smaller turbines based on aerospace engines, called aeroderivatives.
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Why Hexcel is a great stock to buy for 2026
Hexcel's advanced composite materials are the future of the aerospace industry, and each new generation of aircraft increasingly uses relatively more of them. They offer strength and weight advantages over traditional materials like aluminum and steel, helping airlines improve productivity and meet their emissions goals.
NYSE: HXL
Key Data Points
As such, Hexcel is not only a play on the ramp in aircraft production (both Airbus and Boeing have multyear backlogs), but also on the increased use of its composites on aircraft. For example, consider that the legacy Boeing 737 has just 5% composites by weight while the 737 MAX has 15%, and each plane has a $0.2 million to $0.5 million shipset value to Hexcel.
This gives Hexcel excellent long-term growth prospects as the aerospace industry supply chain bottleneck eases and investors begin to look at companies benefiting from OEM growth (Hexcel) as well as aftermarket growth (FTAI Aviation). That's the next phase of the aerospace recovery, and Hexcel is the ideal way to play it.
