Archer Aviation or Vertical Aerospace: Which Has More Upside?

Rising demand for cleaner and more efficient travel is supporting growth in the electric vertical takeoff and landing (eVTOL) industry, which is expected to play an important role in future urban transportation. Two key companies in this space are Archer Aviation Inc. ACHR and Vertical Aerospace Ltd. EVTL, both aiming to improve city travel by reducing congestion and travel time.

US-based Archer Aviation is moving ahead with the Federal Aviation Administration certification process for its Midnight aircraft and plans to begin commercial air taxi operations after receiving regulatory approvals. The company is focused on piloted electric aircraft and is building partnerships to support production and future service deployment.

UK-based Vertical Aerospace is developing its VX4 aircraft and continues to make progress on certification with aviation authorities in multiple regions. The company is targeting urban and regional air mobility markets and is working with strategic partners to expand its international footprint.

As the global eVTOL market develops, both Archer Aviation and Vertical Aerospace remain in focus for investors. While both companies share similar long-term goals, differences in certification progress and execution are likely to influence their future growth potential.

Tailwinds for ACHR

Archer Aviation continues to strengthen its position in the eVTOL market through technology-focused initiatives and international expansion.

In January 2026, Archer Aviation announced plans to develop and deploy next-generation Artificial Intelligence solutions for aviation using NVIDIA’s IGX Thor platform. The company aims to use Physical AI to enhance aircraft safety, improve airspace integration and support future autonomy-ready systems. Archer Aviation plans to showcase this NVIDIA-enabled technology at its recently acquired Hawthorne Airport facility in central Los Angeles. The site is expected to serve as the operating base for its planned Los Angeles air taxi network and as a testing center for AI-based aviation solutions.

During the same month, Archer Aviation entered into a strategic partnership with the Government of the Republic of Serbia to support the introduction of electric air taxis in Europe. Under the agreement, Serbia selected Archer Aviation as its preferred eVTOL partner and holds an option to purchase an initial fleet of Midnight aircraft. The agreement allows for the acquisition of up to 25 aircraft, subject to regulatory and legal approvals, representing an important step in Archer Aviation’s expansion into the European urban air mobility market.

Tailwinds for EVTL

In February 2026, Vertical Aerospace showcased its next-generation electric aircraft, Valo, at the Bass Museum in Collins Park, Miami. The public display highlighted the company’s vision for quieter and more efficient urban and intercity travel. Valo is designed to fly up to 100 miles at speeds of up to 150 mph and features a premium four-passenger cabin with panoramic windows and space for luggage and pets. Vertical Aerospace is also developing a hybrid electric variant with a targeted range of up to 1,000 miles, reflecting its broader ambition in advanced air mobility.

Also in February, Vertical Aerospace signed a strategic three-party Memorandum of Understanding in Riyadh with Abdel Hadi Abdullah Al Qahtani and Sons Group of Companies and the Saudi National Industrial Development Centre, which operates under the Ministry of Industry and Mineral Resources. The agreement establishes a framework to explore the development of a long-term Advanced Air Mobility ecosystem in Saudi Arabia, aligned with the country’s Vision 2030 program. This partnership supports Vertical Aerospace’s efforts to expand its international presence and participate in emerging air mobility markets in the Middle East.

Risks of Investing in ACHR and EVTL

Although ACHR and EVTL are making steady progress with their eVTOL programs and offer near-term potential, their long-term outlook remains uncertain. The eVTOL industry is still at an early stage and its ability to successfully design, certify and scale production will depend on how the market develops and how demand evolves over time.

Key factors such as safety standards, noise performance and overall affordability are likely to influence public acceptance. Any challenges in these areas could slow broader adoption and affect the overall growth of the urban air mobility market.

How do EPS Estimates Compare for ACHR & EVTL?

The Zacks Consensus Estimate for ACHR’s fourth-quarter 2025 loss is pegged at 17 cents per share, indicating a year-over-year improvement. The company’s 2026 EPS estimates have moved south over the past 60 days.

For EVTL, the Zacks Consensus Estimate for fourth-quarter 2025 loss per share is pegged at 38 cents, indicating year-over-year improvement. The company’s 2026 EPS estimates have improved over the past 60 days.

Stock Price Performance: ACHR vs. EVTL

EVTL has outperformed ACHR over the past six months. Shares of EVTL have lost 16.6% compared with ACHR’s decline of 22.4%.

Surprise History

ACHR delivered an average negative earnings surprise of 14.96% in the last four quarters, while EVTL delivered an average negative earnings surprise of 1633.91% in the last four quarters.

Liquidity Position

ACHR has a current ratio of 18.20 compared with EVTL’s 0.55, making the former relatively stronger from a liquidity perspective. The ratio, being more than one, indicates that ACHR possesses sufficient capital to pay off its short-term debt obligations.

Conclusion

EVTL appears to be the more attractive option in the emerging eVTOL market at this stage. The company is showing improving earnings estimate trends and has delivered relatively better stock price performance in recent months, reflecting strengthening investor sentiment.

While ACHR continues to advance its certification efforts and maintains a stronger liquidity position, EVTL’s improving outlook and market performance give it a slight edge as both companies work toward commercializing electric air mobility solutions.

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

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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