Joby Vs Vertical Aerospace: Which eVTOL Stock is Best?
I wrote extensively about the top eVTOL stocks but some of you may be undecided between Joby Aviation (NYSE: JOBY) and Vertical Aerospace (NYSE: EVTL).
Both companies are poised to be leaders in the electric aircraft market for years to come so I want to compare both stocks to give you the best information to make better investment decisions.
Joby Aviation Vs Vertical Aerospace Overview
| Joby Aviation | Vertical Aerospace | |
|---|---|---|
| Market Cap | $3.3B | $1.4B |
| Founded | 2005 | 2016 |
| Headquarters | California, USA | London, UK |
| Employees | 700+ | 250+ |
| Annual Revenue | N/A | N/A |
| EPS | N/A | N/A |
| Cash on Balance Sheet | $1.2B | $200M |
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 Vertical Aerospace plans to focus on selling electric aircrafts to major airlines.
Electric Aircraft Product Design
| Joby eVTOL | VX4 | |
|---|---|---|
| # of max passengers | 4 | 5 |
| Max speed | 200 mph | 200+ mph |
| Charging range | 150 miles | 100 |
Joby spent 10 years working on its eVTOL aircraft design and it shows with their long range capabilities and impressive 200 mph max speed.
Vertical Aerospace built a slightly bigger eVTOL that operates at a higher max speed with a lower charging range.
It’s a close decision between both of these aircrafts but I’ll give the slight edge to Vertical Aerospace.
Winner: Vertical Aerospace
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.
Vertical Aerospace CEO Stephen Fitzpatrick has the ability to innovate the eVTOL sector with the lucrative American Airlines deal.
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.
Vertical Aerospace shares are down around 20% from its initial SPAC price thanks to the first ever confirmed eVTOL order from a major airline when American Airlines paid for 50 VX4 aircrafts. The company projects to generate $7.2 in revenue by 2028.
Joby has a lot more cash on its balance sheet and projects a lot more revenue by the end of the decade. Also, Joby has an advantage being an American company over Vertical Aerospace, a British company, in my opinion.
The eVTOL market in North America is much larger and provides more long term upside. I’ll go with Joby Aviation on this one.
Winner: Joby
Summary
That’s my comparison of Joby and Vertical Aerospace stock.
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,
Vertical Aerospace looks promising and the American Airlines order will provide plenty of liquidity to fund future operations. I like both companies although I’m still super bullish on Joby Aviation in the future.
