Considering FEAR wasn't scary, I'd say the answer is yes. Dead Space uses sound and visuals in a way I've not experienced in a while. There is a perpetual sense of dread and anxiety and, if you thought FEAR was scary, you will jump many times over the course of the game.
Not to mention the fact that in FEAR, you are a super-soldier with an arsenal rivaling many developing nations. In Dead Space, you are an engineer armed with mining equipment, in the middle of space. So there's that, too.