Joby Vs Archer: Which eVTOL Stock is Best?
I covered the best eVTOL stocks in depth but some of you may be stuck deciding between two of the biggest publicly traded electric aircraft producers, Joby Aviation and Archer Aviation.
While I do hold both companies in my portfolio, I want to provide some helpful information to help you pick which eVTOL stock is best for you.
Joby Aviation (JOBY) Vs Archer Aviation (ACHR) Overview
| Joby Aviation | Archer Aviation | |
| Market Cap | $3.3B | $1B |
| Founded | 2005 | 2018 |
| Employees | 700+ | 200+ |
| Annual Revenue | N/A | N/A |
| EPS | N/A | N/A |
| Cash on Balance Sheet | $1.2B | $700M |
Market Share
The eVTOL industry is still under development so neither Joby nor Archer has a dominant market share.
Joby Aviation was founded in 2005 compared to Archer’s founding in 2018 so Joby definitely has an advantage when it comes to research & development.
Joby also has a lot more cash on its balance sheet to fund growth and expansion. I assume most eVTOL companies will struggle to make a profit during the 2024 launch phase and won’t become EBITDA profitable until 2026 or later.
Winner: Joby
Business Model
Both companies plan to produce and sell electric aircrafts to 3rd parties such as airlines, aerospace defense organizations, and foreign buyers.
Joby Aviation has plans to operate an air taxi service in conjunction with Uber while Archer inked deals with local American cities to provide similar services.
It seems like the main goal is to produce eVTOLs then send them out to generate recurring revenue as “air taxis”. Several major airline companies have approached Archer, including United Airlines, to use their eVTOL to transport passengers to and from airport terminals.
Winner: Joby
Electric Aircraft Product Design
| Joby eVTOL | Archer Maker | |
| # of max passengers | 4 | 2 |
| Max speed | 200 mph | 150 mph |
| Charging distance | 150 miles | 60 miles |
Joby spent 10 years working on its eVTOL aircraft design and it shows with their long range capabilities and impressive 200 mph max speed.
On the other hand, Maker is a smaller eVTOL although the company plans to produce a 4 passenger aircraft in the future.
Joby designed a bigger and more capable aircraft in my opinion so I have to give them the edge on this one.
Winner: Joby
Pre-Orders and Partnerships
Joby’s partnership with Uber seems pretty attractive and there is way more demand for air taxi services from consumers (especially once they experience the quickness and ease of urban air mobility).
Archer’s $1 billion deal with United Airlines made headlines in 2021 plus the two companies teamed up to form an eVTOL operations commitee to help Archer’s growth prospects.
Winner: Archer
Management Team
Joby Aviation CEO JoeBen Bevirt leads an impressive executive team of aircraft engineers and businessmen. He has dedicated nearly 20 years of his life to producing a flawless eVTOL that will take passengers around the country safely.
Archer Aviation CEO Adam Goldstein assumed the role of Chief Executive Officer after his long time business parnter Brett Adcock stepped down as CO-CEO. The company lost several executives during 2022 amidst a possible corporate scandal involving Brett Adcock.
JoeBen Bevirt remains a consistent leader of Joby’s Management team and I’ll give him the edge due to his experience and older age.
Winner: Joby
Fundamental Analysis
Both companies went public in 2021 via SPAC deals at an initial price of $10. The SPAC bubble burst in November 2021, leaving many eVTOL stocks trading well below their initial valuation.
Joby stock is down around 50% and sits at a market cap of over $3 billion. The company plans to launch its air taxi service in 2024 with a goal to reach $20 billion in revenue by 2030.
Archer stock is down around 65% and sits at a market cap of around $1 billion. The company plans to generate $12 billion in revenue by 2030.
From a pure fundamental standpoint, Joby Aviation has a stronger balance sheet and bigger long term revenue projection.
No one is 100% sure which company will win the eVTOL race and it’s possible that electric car companies such as Tesla could produce eVTOLs to compete for urban air mobility market share.
Winner: Joby
Summary
Joby wins by a margin of 4 to 1 in my opinion.
I own a sizable stake in Joby Aviation because the company looks similar to how Tesla performed nearly 12 years ago. JoeBen Bevirt is a MIT graduate with a passion for urban air mobility. It’s hard to bet against him at this point,
Archer is a much newer company with a lot of ground to catch up in the eVTOL race. Adam Goldstein is a capable CEO but I’m not sure how he will compete with Joby’s strong investment backing and extensive 10,000 hour flight testing.
Do your research and figure out which stock you believe in the most.
I’m leaning towards Joby Aviation to lead the eVTOL industry.
