Archer vs. Joby: Which eVTOL Stock Has an Edge Currently?

In recent years, demand for advanced air transport options like electric vertical takeoff and landing (eVTOL) aircraft has grown significantly, spurred by rising urban congestion and breakthroughs in transportation technology. This heightened interest in urban air mobility is boosting investor confidence in companies such as Archer Aviation ACHR and Joby Aviation JOBY, both of which are striving to lead the eVTOL movement.

Archer Aviation is developing a ride-sharing model aimed at providing short-haul flights connecting city centers with nearby airports or suburban areas, supported by key partnerships. In contrast, Joby Aviation follows a vertically integrated approach, concentrating on both the design and operation of its air taxi services, backed by strategic investors.

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 JOBY

Joby aims to start carrying passengers in Dubai next year. As part of its efforts related to air taxi commercialization, Joby recently announced that it has inked a deal to buy the helicopter ride-share operator Blade Air Mobility’s BLDE urban air mobility passenger business for up to $125 million. Blade sells per-seat helicopter trips from New York City to nearby airports and resort towns. Following the closure, Blade’s passenger operations will continue to be led by its founder and CEO, Rob Wiesenthal, as a wholly-owned subsidiary of Joby.

The acquisition, if it goes through, would provide Joby with a ready-made market for the aircraft. Joby would have direct access to Blade’s existing urban air routes and infrastructure, particularly in NYC. The deal, upon materialization, is likely to provide Joby a head start over competitors like Archer Aviation by providing market access and scale while reducing costs for new vertiports and customer acquisition.

As part of its push toward commercialization, Joby recently completed its first flight between two U.S. airports — Marina and Monterey, CA — operating alongside other aircraft in FAA-controlled airspace. This milestone marks significant progress in Joby’s path to commercial readiness, showcasing advancements in safety, operational performance, air traffic integration, and certification efforts.

Moreover, Joby, last month, announced plans to expand operations. To this end, the transportation company announced the expansion of its site in Marina, CA, which will double its aircraft production capacity at that location. The expanded site will span 435,500 square feet, helping the company to scale up its commercial operations. 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 Case for ACHR

Archer Aviation’s Midnight aircraft recently completed its longest piloted flight to date, flying 55 miles in 31 minutes at more than 126 miles per hour. This marked an important milestone for Archer as it works toward getting certification for the Midnight aircraft in the United States and prepares for its commercial launch in the UAE. With its key partnerships and regulatory progress, Archer remains a leading contender in the eVTOL market.

ACHR’s growth is underpinned by strong government and commercial collaborations. In August, the company accelerated its defense program with two strategic acquisitions that brought in advanced technologies and expertise, strengthening its position to meet growing demand from government and defense customers. In July, the company began test flights in Abu Dhabi, a key step toward building its presence in the Middle East and moving closer to commercial launch in the region. In June, Archer partnered with Jetex, a private aviation leader, to integrate its global network of terminals into the Midnight air taxi service, ensuring that the necessary infrastructure is in place to support future operations. ACHR also announced, while releasing its second-quarter 2025 results, that it is concurrently manufacturing six Midnight aircraft across its supply chain, three of which are in final assembly across its facilities. 

Return on Equity: ACHR vs. JOBY

The negative Return on Equity for ACHR 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: ACHR vs. JOBY

JOBY has scored better than ACHR in terms of price performance over the past year. However, both stocks have soared in triple digits.

1-Year Price Performance

Earnings Surprise History: ACHR vs. JOBY

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

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 Archer Aviation and Joby Aviation are making notable progress in the fast-evolving eVTOL space, challenges remain in terms of scalability and public acceptance. 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.

ACHR scores over Joby in terms of earnings surprise history. Archer’s strategic airline partnerships and faster production ramp-up give it an edge in commercialization, whereas Joby’s vertically integrated model and certification milestones offer strong long-term potential.

Despite shared risks, like high costs and uncertain demand, Archer Aviation currently holds the edge over Joby Aviation. While ACHR 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research