In short- "yes, but......"
A custom engine,
when fully developed, is significantly better than a normal engine and owning your own allows you to fine-tune the strength to any track or car you need.
However, until it is at a high enough level (requiring significant time and/or tokens) it will be
weaker than a regular supplier (such as Murk or Tifosi).
Of course, you can just become a customer to another's engine, saving you the money and time to develop your own in exchange for not having overall control over the attributes improved.
Most players with more than one account will use one account to supply the other(s), allowing them to maintain a competitive account while upgrading the engine in a weaker league, then gaining it's performance boost on both when developed adequately.
If you want a guide on engine manufacturing, I recommend
this helpful guide by Super Mod Kevin Bissell
To fully max a Level 24 engine immediately will require
552 engine points (570 tokens, including to buy the engine)
You receive 1 engine point per race automatically.
On mobile you can watch up to 5 adverts per day for engine points, giving you 6EP / day =
92 days (93 including season breaks)
to max a level 24 engine for free. Of course, using F2P tokens this can be accelerated as much as you like.