Archer Aviation vs. Joby Aviation: Which eVTOL Upstart Is a Better Stock in 2026?

As the urban air mobility market moves toward launch, investors are weighing the merits of Archer Aviation (NYSE:ACHR) against Joby Aviation (NYSE:JOBY) to identify the superior long-term play.

Both companies are developing electric vertical takeoff and landing aircraft to bypass city traffic. While they share similar goals, their manufacturing strategies and early customer partnerships create distinct paths for those interested in the future of flight. This comparison explores which stock offers the best opportunity in 2026.

The case for Archer Aviation

The company is a prominent name among industrial stocks that are moving into urban air mobility. It develops all-electric vertical takeoff and landing aircraft for air taxi operations with a focus on U.S. and UAE markets. Archer Aviation has a conditional purchase agreement with United Airlines (NASDAQ:UAL) for up to $1.0 billion in aircraft, and customer concentration like this adds a layer of risk to the business. Manufacturing strategy relies on Stellantis (NYSE:STLA), while the company also partners with Anduril Industries on hybrid aircraft.

In FY 2025, the business generated its first revenue, of $300,000. This marks the beginning of the efforts to move from development to commercial flight. During this fiscal year, Archer Aviation reported a net loss of $618.2 million, exceeding its loss from the previous year and reflecting the company’s early-stage commercial development.

As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.1x. This ratio measures total debt, including short- and long-term obligations, against shareholders’ equity, with a lower number indicating less reliance on borrowed money. The current ratio is lower, at 0.06x. Free cash flow was negative at $511.7 million, representing the cash remaining after operating and capital spending are covered.

The case for Joby Aviation

Joby Aviation employs several go-to-market strategies, including its own air taxi services and direct sales. The company maintains a deep relationship with Toyota Motor Co (NYSE:TM), which serves as both a major investor and manufacturing collaborator. Joby Aviation also works with Delta Air Lines (NYSE:DAL) to integrate aerial ridesharing into premium airport services. To accelerate its market presence, the company operates Blade Urban Air Mobility as a subsidiary and integrates with the rideshare platform of Uber Technologies (NYSE:UBER).

In FY 2025, revenue jumped to nearly $53.4 million, a massive leap from the roughly $136,000 recorded in 2024. This growth was largely driven by its move toward full commercialization and the integration of its aviation service segments. Despite the higher revenue, Joby Aviation reported a net loss of approximately $930 million for the year.

As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.0x. This indicates that total debt is minimal relative to shareholders’ equity. Free cash flow was negative at nearly $563.8 million, showing the high level of cash used to build out its flight operations.

Risk profile comparison

Archer Aviation faces significant financial sustainability risks following its 2025 net loss of over $618.2 million. The company requires substantial capital to reach profitability and must successfully navigate FAA certification timelines. It is also involved in active litigation with Joby Aviation regarding trade secrets. These legal proceedings could divert management attention and lead to unfavorable financial outcomes.

Joby Aviation relies on future funding from Toyota, which is subject to closing conditions and manufacturing agreements. The company must manage the operational challenges of integrating its Blade acquisition while ramping up production in multiple states. Failure to meet FAA milestones would significantly delay its commercial service launch. Like its peer, Joby Aviation is managing the risks associated with ongoing patent and trade secret litigation.

Valuation comparison

Joby Aviation trades at a much lower P/S ratio than Archer Aviation, though both are trading at a premium.

Sector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Last year, the U.S. federal government created the framework for real-world testing of eVTOL aircraft, a concrete step toward making Archer’s and Joby’s visions a reality. Japan, South Korea and Saudi Arabia are other countries building similar regulatory frameworks. A lot still has to happen for either company’s aircraft to get into the skies, but the notion that the nation’s airspace is being regulated in a way that is holding back growth is one that has found favor.

Archer is taking steps to refurbish a small Los Angeles airport for use as its testing grounds and is working to scale up its manufacturing capabilities to eventually reach capacity for 50 planes a year. Management has an initial plan to focus on military and cargo uses for its plane, which would be an easier path to early revenue. It’s highly speculative, but Wall Street analysts see Archer turning its first profit in 2030, with $2.3 billion in revenue, but a lot has to go right between now and then.

Joby recently tested its Blade aircraft in New York City, in different charging environments and on real routes it proposes in the real world, such as flying from JFK airport, on the outskirts of the city, into Manhattan. Joby is further along with its manufacturing capabilities, embedding Toyota philosophies throughout its system. Even though it is further along the path to market, analysts don’t see Joby turning a profit through 2030, a year in which consensus projects $2.3 billion of revenue and a net loss of around $195 million.

Both Archer and Joby are early-stage aircraft businesses with significant risk for potential investors. Joby’s business model of flying short, in-demand routes in major cities seems more attainable after its testing in New York City. Its price-to-sales ratio of almost 97 is high but well below Archer’s. If you want to take a flyer on an upstart electric aircraft maker, go with Joby.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines and Stellantis. The Motley Fool has a disclosure policy.