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 AviationArcher Aviation
Market Cap$3.3B$1B
Founded20052018
Employees700+200+
Annual RevenueN/AN/A
EPSN/AN/A
Cash on Balance Sheet$1.2B$700M

Market Share

Joby Vs Archer 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

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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 eVTOLArcher Maker
# of max passengers42
Max speed200 mph150 mph
Charging distance150 miles60 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.

Joby Aviation eVTOL
Joby Aviation eVTOL

On the other hand, Maker is a smaller eVTOL although the company plans to produce a 4 passenger aircraft in the future.

Archer Maker
Archer Maker

Joby designed a bigger and more capable aircraft in my opinion so I have to give them the edge on this one.

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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.

JoeBen Bevirt
JoeBen Bevirt

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.

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Adam Goldstein
Adam Goldstein

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.

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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.

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