ACHR or EVTL: Which Stock Shines Brighter in the Air Mobility Market?

As the aviation industry is moving rapidly toward electrification, advanced air mobility companies are drawing increased interest from investors amid growing demand for sustainable transportation. Two such stocks are Archer Aviation Inc. ACHR and Vertical Aerospace Ltd. EVTL, both of which are working on electric vertical takeoff and landing (eVTOL) aircraft designed to transform urban and regional air travel.

U.S.-based Archer Aviation is currently advancing toward Federal Aviation Administration certification for its flagship Midnight aircraft. The company plans to roll out commercial air taxi services by the end of 2025. Vertical Aerospace is also advancing its VX4 eVTOL aircraft with a focus on certification and large-scale deployment in global markets.

Now, let’s take a closer look to determine which of these stocks is a stronger contender in the evolving eVTOL market.

Key Takeaways for ACHR

Recent Achievements: Among recent progresses Archer Aviation has made in the commercialization of its Midnight aircraft, worth mentioning is the completion of this aircraft’s longest piloted flight to date this month. It covered 55 miles in 31 minutes at a speed of more than 126 miles per hour.

Meanwhile, in its second-quarter 2025 results announcement, Archer Aviation mentioned that it is manufacturing six Midnight aircraft across its supply chain, with three already in final assembly at its facilities.

In July, Archer Aviation began test flights in Abu Dhabi, a key step toward building its presence in the Middle East. These developments highlight the company’s efforts to scale production while positioning itself for a larger commercial rollout of the Midnight eVTOL.

Financial Stability: Archer Aviation ended the second quarter of 2025 with cash and cash equivalents of $1.73 billion. Its long-term debt stood at $0.08 billion, with no notable current maturities. This indicates a strong financial position, which could boost the company's ability to reliably fund its ongoing operations and future growth plans.

Key Takeaways for EVTL

Recent Achievements: Vertical Aerospace is also progressing with its VX4 eVTOL aircraft. In August, the company entered a long-term strategic partnership with Aciturri Aerostructures to build the airframe for its VX4 aircraft.

Moreover, in July, the company completed its first airport-to-airport piloted flight by a full-scale, winged tilt-rotor eVTOL designed for commercial service.

Additionally, in June, the company expanded its strategic partnership with Bristow Group Inc. to develop a scalable eVTOL operations platform to help customers adopt eVTOL services more easily by offering fully integrated solutions without the need to build operational infrastructure from the ground up.

These developments should put EVTL a step ahead toward bringing advanced air mobility into commercial use.

Financial Stability: Vertical Aerospace ended the second quarter of 2025 with cash and cash equivalents of $85 million. Its long-term debt stood at $2 million, with no notable current maturities. This indicates a strong financial position, which should support its plan to expand its production capacity and subsequently deliver up to 150 aircraft to its customers by 2030.

Risks of Investing in ACHR and EVTL

While both Archer Aviation and Vertical Aerospace are making notable progress with their individual eVTOL aircraft and thus show strong short-term potential, their long-term success remains uncertain. The eVTOL industry is at an early stage, and both the stocks’ ability to design, certify and scale production will depend on how the industry develops and how the demand for their aircraft grows over time. Key factors such as safety, noise and affordability could also affect public acceptance and slow down wider adoption.

Another challenge is that both ACHR and EVTL are in the pre-revenue stage. Until they begin commercial operations and build a stable customer base, their ability to deliver consistent long-term value remains uncertain.

How do EPS Estimates Compare for ACHR & EVTL?

The Zacks Consensus Estimate for ACHR’s 2025 loss is pegged at 78 cents per share, indicating year-over-year improvement. The company’s 2025 loss estimates have improved over the past 60 days.

For EVTL, the Zacks Consensus Estimate for 2025 earnings per share is pegged at $2.77, indicating an improvement from the prior-year quarter’s loss of $47.6 per share. The company’s near-term EPS estimates have improved over the past 60 days, except for 2025.

Stock Price Performance: ACHR vs. EVTL

ACHR has outperformed EVTL over the past year. Shares of ACHR have gained 160.4% against EVTL’s decline of 46%.

EVTL’s Balance Sheet Stronger Than ACHR’s

EVTL has a total debt-to-capital ratio of 0 compared with ACHR’s 3.67, making the former relatively stronger from a leverage perspective.

Conclusion

As the eVTOL market takes off, both Archer Aviation and Vertical Aerospace show promising strides in aircraft development. Despite early-stage risks and pre-revenue status, these companies represent key players in the future of urban air mobility.

ACHR leads in stock performance and commercial rollout progress, while EVTL demonstrates financial prudence and long-term scalability. Against that backdrop, investors interested in these stocks should weigh growth potential against industry uncertainties when deciding which one between ACHR and EVTL aligns with their portfolio strategy.

Archer Aviation currently carries a Zacks Rank #4 (Sell), while Vertical Aerospace has a Zacks Rank #3 (Hold).

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

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

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