Rolls-Royce shares are up 104% in the past year. The business is one of the top-performing stocks in the FTSE 100 over this period. However, some are concerned about the high valuation and whether there’s much potential for further gains in 2026. When looking for alternatives, I came across one that I think could do really well.

Show me the MONY

I’m talking about MONY Group (LSE:MONY). The stock’s up a modest 2% in the past year. This represents the first reason why I think it could do better than Rolls-Royce. It’s a company that hasn’t experienced a sharp share price rally (yet), which makes it much more attractive from a valuation perspective.

For example, it has a price-to-earnings ratio of 10.95. This contrasts to Rolls-Royce at 60.90. So in terms of picking a stock where there could be more potential to rally, I’d say MONY Group gets the nod.

Of course, this is irrelevant if I’m not optimistic about the firm’s prospects. Yet in this case, I am. The business is a UK-focused savings and price-comparison platform that helps consumers find better deals on financial products and services. It tends to outperform when the UK economic outlook isn’t great. If more people are concerned about their personal finances, they’re more likely to shop around and use price comparison sites. This increases traffic to the group and lead fees from referrals.

Given the risk of slow UK growth in 2026, I think MONY Group could see a traffic spike, ultimately boosting earnings and the share price.

Generating AI gains

Artificial intelligence (AI) is becoming increasingly important in all businesses. When I compare the two firms, I think MONY Group stands to gain more from further integrating this into operations than Rolls-Royce.

For example, MONY Group’s deployed Fin, an AI agent, which is now involved in 98% of customer conversations. It’s reportedly handling over 25,000 queries a month via chat and email. Over time, this will save costs, freeing up human resources. It can process queries faster, enabling it to serve more customers and retain more business.

It’s also using AI in other ways, such as to push more tailored marketing and offers to clients. As this continues to expand this year, I think it’s well placed to help reduce costs and boost profits. I’m not suggesting Rolls-Royce isn’t making good use of AI, but I think MONY Group’s use cases are higher and could work to its advantage.

Caveats

Of course, I could be wrong in my view. Momentum could stay with Rolls-Royce as investors get the fear of missing out (FOMO) and simply buy because it keeps going up. As for MONY Group, there’s continued regulatory risk. If the UK regulator decides to tighten up on financial promotions or disclosure requirements, it could hamper growth.

Yet on balance, when looking for growth stocks for 2026, I think MONY Group could be a viable growth alternative to Rolls-Royce to consider.