Archer vs. Joby: Which eVTOL Stock Aces in Urban Air Mobility?

Demand for new-age air transport vehicles, such as electric vertical takeoff and landing (eVTOL) aircraft, has increased manifold in recent years, driven by escalating urban congestion and the advent of transformative transportation technologies. This rising interest in urban air mobility is fueling investor optimism in companies like Archer Aviation ACHR and Joby Aviation JOBY, both of which are positioning themselves at the forefront of the eVTOL revolution.

Archer Aviation is pursuing a ride-sharing model to offer short-haul ride-sharing flights between city centers and nearby airports or suburbs, in partnership with major players like United Airlines. Meanwhile, Joby Aviation is vertically integrated, focusing on designing and operating its own air taxi service, with backing from companies like Toyota and Delta.

With regulatory approvals advancing and infrastructure investment accelerating in the commercialization of urban air mobility, the eVTOL sector is poised for growth, raising an inherent question for an investor: Which eVTOL stock is a better player to focus on? To get the answer, let’s dive deep. 

Financials and Growth Catalysts: How Do Archer and Joby Stack Up?

ACHR ended first-quarter 2025 with cash and cash equivalents of $1.04 billion. Its long-term debt totaled $74 million while its current debt was nil. This 

reflects a solid solvency position for the company and should provide it with the necessary resources to execute its civil and defense business strategies and invest in innovative technologies.  

Archer Aviation’s growth is underpinned by strong government and commercial collaborations. On May 19, 2025, it was announced that ACHR has joined forces with Anduril Industries to test dual-use eVTOL cargo aircraft in the UK market. Earlier this month, Archer Aviation revealed that it has been selected as the Official Air Taxi Provider of the LA28 Olympic and Paralympic Games and Team USA. Through this exclusive partnership, Archer’s Midnight eVTOL aircraft will be used across the LA28 Games in a variety of ways, such as transporting VIPs, fans, and stakeholders, while electrifying vertiport take-off-and-landing hubs for key venues and providing support for emergency services and security.

Regarding ACHR’s progress in its Midnight eVTOL product line, it is imperative to mention that the company started production of aircraft at its high-volume aircraft manufacturing facility, ARC, located in Covington, GA, in the first quarter of 2025.  This will support Archer Aviation to steadily ramp up its production there to achieve the timely commercial launch of Midnight jet by late 2025. 

Joby Aviation also maintains a strong cash position, with $0.81 billion on hand as of March 31, 2025. As of the same date, both its long and short-term debts were nil. This should provide JOBY with the financial flexibility it needs for designing and manufacturing aircraft, as well as developing production lines for jet components. 

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 UK, starting with their hubs at London Heathrow and Manchester.  

Looking ahead, JOBY plans to deliver its eVTOL aircraft to Dubai by mid-2025 and launch commercial passenger operations by late 2025 or early 2026. To support this, the company is expanding its manufacturing facility, which is expected to be completed by June 2025. This should help JOBY deliver more aircraft in the coming years. 

Challenges for JOBY & ACHR 

Both Archer Aviation and Joby are navigating a capital-intensive runway. However, whether the business model for both these stocks will be sustainable in the long run remains uncertain. This is because of the nascent stage of the eVTOL aircraft market itself. So, ACHR and JOBY's success depends not only on their ability to design, develop and certify eVTOL aircraft but also on how the demand for these vehicles evolves. 

Public acceptance of eVTOLs as an alternative to traditional transport methods could face hurdles related to safety, noise and affordability concerns. Without widespread recognition, JOBY and ACHR's growth potential may be constrained. Moreover, since both these stocks are in their pre-revenue stage (although JOBY has generated an insignificant amount of revenues in recent times), investors might remain concerned about their long-term growth viability. 

How Do Zacks Estimates Compare for ACHR & JOBY?

The Zacks Consensus Estimate for Archer Aviation’s 2025 loss per share implies a year-over-year improvement, while the same for 2026 suggests a deterioration.  The stock’s near-term bottom-line estimates have been trending upward over the past 60 days.

The Zacks Consensus Estimate for Joby Aviation’s 2025 and 2026 loss per share suggests year-over-year growth. Its revenue estimates also show solid improvement. The stock’s near-term bottom-line estimates have also been trending northward over the past 60 days.

Stock Price Performance: ACHR vs JOBY

ACHR (up 19.2%) has outperformed JOBY (down 5.3%) over the past three months and has done the same in the past year. Shares of ACHR and JOBY have surged 230.9% and 36.4%, respectively.

ROE: ACHR vs JOBY

The image below, reflecting a negative Return on Equity (ROE) for ACHR and JOBY, suggests that neither of these eVTOL stocks is efficiently generating profits from its equity base.

Final Task

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. 

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. Financially, both maintain solid cash positions with no current debt, yet remain in pre-revenue stages, making their profitability uncertain. 

Investors thus focusing on ACHR and JOBY may consider staying on the sidelines until clearer signs of regulatory progress, revenue generation, and market adoption emerge in this high-potential but early-stage eVTOL market. Yet, considering ACHR’s outperformance at the bourse, one may prefer it over JOBY. 

Both ACHR and JOBY carry a Zacks Rank #3 (Hold) at present. You can see the complete 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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