EVEX vs. JOBY: Which eVTOL Stock Holds the Edge in Urban Air Mobility?

The demand for next-generation air transport solutions, including electric vertical takeoff and landing (eVTOL) aircraft, has surged significantly in recent years, spurred by growing urban congestion and the emergence of groundbreaking transportation technologies. This heightened interest in urban air mobility is causing investors to focus on companies, such as Eve Holding EVEX and Joby Aviation JOBY, both of which are prominent players in the eVTOL movement.

The Brazil-based Eve, a spin-off from aerospace giant Embraer, is leveraging its parent company’s extensive aerospace experience. The company has completed numerous component and systems tests for its eVTOL aircraft, with flight tests likely to commence shortly. Meanwhile, Joby Aviation is vertically integrated, focusing on designing and operating its air taxi service, with backing from companies like Toyota TM.

With the global eVTOL market having great potential, let's examine closely to find out which eVTOL stock currently holds the edge, and more importantly, which might be the smarter investment now.

The Case for EVEX

Eve Holdings’ growing backlog of Letters of Intent (LOIs), such as the recent agreement with Future Flight Global for up to 54 eVTOLs, reflects rising global interest in its aircraft and technology. These LOIs serve as early indicators of strong commercial demand across strategic markets like Brazil and the United States. As Eve progresses toward certification, this robust pipeline strengthens its growth outlook and supports future revenue generation.

Notably, the company currently expects commercialization of its eVTOL services-and-support business beginning in 2026, followed by the commercialization and initial revenue generation from the sale of its eVTOLs beginning in 2027.

Eve Holdings’ cash position is impressive. The company had $0.06 billion on hand as of March 31, 2025. As of the same date, its short-term debt was nil, while its long-term debt was $0.14 billion. This implies that while the stock is financially viable for the near term, its long-term solvency hinges on its ability to successfully generate considerable revenues before its cash reserves diminish.

The Case for JOBY

Joby Aviation’s growth prospects are bolstered by its strategic partnerships and advanced certification timeline. Notably, in May 2025, the company announced its first-quarter 2025 results, which reflected that it has made record progress on the certification of its aircraft for a second quarter in a row. JOBY also formed a partnership in the January-March quarter with Virgin Atlantic to launch air taxi services in the United Kingdom, starting with their hubs at London Heathrow and Manchester.  

Earlier this year, JOBY announced that its electric air taxi has completed a series of piloted, vertical-takeoff-and-landing wingborne flights in Dubai. The flights were conducted in partnership with Dubai's Roads and Transport Authority, the Dubai Civil Aviation Authority and the UAE's General Civil Aviation Authority. Joby plans to launch commercial operations in Dubai early next year, before expanding to U.S. cities. 

Earlier this month, Joby announced the expansion of its site in Marina, CA, which will double its aircraft production capacity at that location. Once operational, Joby expects the Marina site to be able to produce up to 24 aircraft per year as it races to launch air taxis. The company is also ramping up operations at its newly renovated facility in Dayton, OH, to manufacture and test aircraft components. Joby has also expanded its test flight program and is boosting fleet size by adding a new aircraft. The company’s close collaboration with Toyota is a key reason behind the former’s expansion move. Per Joby, engineers from Toyota have "deeply integrated" with the process and continue to offer support to optimize manufacturing and design. Recently, Joby announced the successful closure of the first $250 million tranche of the strategic investment from Toyota.

Return on Equity: EVEX vs. JOBY

The negative Return on Equity for EVEX and JOBY, as shown in the figure below, suggests that neither of these eVTOL stocks is efficiently generating profits from its equity base.

Stock Price Performance: EVEX vs. JOBY

JOBY has scored better than EVEX in terms of price performance over the past year.

1-Year Price Comparison

Earnings Surprise History: EVEX vs. JOBY

EVEX has a better track record than JOBY in this respect, having outshone the Zacks Consensus Estimate for earnings twice in the last four quarters, matching estimates once, and falling short of the consensus mark on the remaining occasion.

On the other hand, JOBY has failed to beat the Zacks Consensus Estimate for earnings in any of the past four quarters.

End Note

While both JOBY and EVEX are prominent forerunners in the emerging eVTOL space, challenges remain in terms of the industry’s viability and public acceptance over the long run. In the absence of commercialization, there is no real demand for urban air mobility at present.

Only time will tell how the market and customer demand for eVTOLs will turn out. Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise, and affordability concerns.

Eve, supported by Embraer and backed by numerous LOIs, shows long-term potential. The company scores over Joby in terms of earnings surprise history.

Despite shared industry risks, like high costs and uncertain demand, Eve Holding currently holds the edge over Joby Aviation. While EVEX carries a Zacks Rank #3 (Hold), JOBY has a Zacks Rank #4 (Sell) at present.  

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
 

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This article originally published on Zacks Investment Research (zacks.com).

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