Better Robotics Stock: Richtech Robotics vs. Serve Robotics

Serve Robotics (NASDAQ: SERV) and Richtech Robotics (NASDAQ: RR) both have market capitalizations of roughly $640 million, yet their strategies differ significantly. One of these robot pioneers is building a delivery network that could become critical urban infrastructure. The other is spreading across various industries, including hospitality and healthcare. As of Nov. 14, 2025, Serve shares are down about 30% year to date, while Richtech is up about 24%.

Which of these robotics stocks is the better buy right now? Let's break down each company's core value proposition and key risk factors to find out.

Image source: Getty Images.

Two very different approaches

Serve Robotics originated inside Postmates and spun out with Uber Technologies as a major partner. The company now also works with DoorDash and operates fleets in Los Angeles, Dallas, Miami, and Atlanta. The robots are built by Magna International and utilize Nvidia artificial intelligence (AI) hardware, traveling at approximately 11 miles per hour. The business model is evolving from hardware sales toward recurring fleet services.

Richtech takes the opposite approach. Headquartered in Las Vegas, the company sells robots across multiple verticals. Key products include ADAM, a two-armed AI bartender showcased at Nvidia GTC, as well as the Scorpion robot bartender, Matradee Plus food runners, and Dex, a mobile humanoid platform. Richtech is pivoting from one-off hardware sales to Robotics-as-a-Service (RaaS) on multi-year contracts, aiming for 70% gross margins.

The numbers tell different stories

Serve is growing fast from a tiny base. Third-quarter 2025 revenue hit $687,000, up about 209% year over year. Full-year 2025 guidance is expected to exceed $2.5 million. The real inflection comes in 2026, where Wall Street expects roughly $28 million to $31 million, driven by a 2,000-robot fleet. Profitability remains elusive through at least 2028, but the company holds over $200 million in cash and short-term investments following a $100 million equity raise in October 2025.

Richtech's financials are messier. Revenue was $8.8 million in 2023, then fell to $4.2 million in 2024 as the company reset toward RaaS. Third-quarter 2025 net loss was $4.1 million with revenue down 16% year over year, marking the fourth straight earnings miss. Gross margins are approximately 70%, but operating losses are substantial. The company used at-the-market share issuance in 2025, resulting in ongoing dilution. Bulls point to reaching breakeven around 2027 if RaaS gains traction.

Valuation and execution risk

Serve trades at a hefty premium valuation -- 266 times trailing sales, but a more reasonable multiple (19 times sales) on 2026 projections if growth materializes as expected. The company demonstrates 99.8% operational reliability and has over $200 million in cash and short-term investments, all of which are dedicated to a single, focused use case.

If it proves it can consistently deliver more cheaply and reliably than human couriers in dense neighborhoods, every new robot added to a city makes the network more valuable and drives operating leverage.

Richtech also trades at an extreme multiple of 81 times trailing sales. The company is spread across many verticals, which adds upside but makes it harder to dominate any single niche. Revenue is small and lumpy, declining from 2023 to 2024. The capital structure is fragile with recurring dilution.

Which robotics exposure do you want?

Serve is the purer, higher-risk network play with a much stronger balance sheet. If the company executes, it could deliver infrastructure economics for urban delivery. Risks include the execution of deploying 2,000 robots, potential competition if Uber or DoorDash internalize robots, and sidewalk regulation.

Richtech is the diversified platform story, trading well ahead of its fundamentals. The company benefits from the Nvidia alignment and its deployment of more than 300 robots across hospitality and healthcare, giving it a growing dataset to refine its platforms. But execution risk remains high in turning pilots into enterprise rollouts.

For investors who believe sidewalk delivery robots will replace human couriers at scale, Serve offers concentrated exposure. For investors seeking broader robotics exposure, Richtech offers diversification at the expense of dilution risk and less predictable revenue.

George Budwell has positions in Nvidia and Serve Robotics. The Motley Fool has positions in and recommends DoorDash, Nvidia, Serve Robotics, and Uber Technologies. The Motley Fool recommends Magna International. The Motley Fool has a disclosure policy.