Advance Auto Parts vs. Joby Aviation: Which Stock Is a Better Buy in 2026?

Investors weighing traditional retail against futuristic transportation face a tough choice between Advance Auto Parts (NYSE:AAP) and Joby Aviation (NYSE:JOBY) as they look to build their portfolios for 2026.

Advance Auto Parts operates a massive network of retail stores focused on the steady automotive repair market. In contrast, Joby Aviation is a pre-revenue pioneer developing electric vertical takeoff and landing aircraft. While one relies on established cash flow and restructuring, the other depends on regulatory milestones and technological breakthroughs in the sky.

The case for Advance Auto Parts

Advance Auto Parts provides automotive aftermarket parts to both professional installers and do-it-yourself customers. The professional segment, which includes garages and service stations, represents roughly 50% of total revenue. After divesting its Worldpac business, the company is now focusing on its core model among retail stocks.

In FY 2025, revenue reached nearly $8.6 billion, which was a decrease from the approximately $9.1 billion reported in the previous year. Despite the lower revenue, the company achieved a net income of close to $44.0 million. This marked a significant recovery from the net loss recorded in fiscal year 2024, resulting in a net margin of roughly 0.5%.

As of its January 2026 balance sheet, the debt-to-equity ratio was 2.4x, a metric comparing total debt to shareholder equity. The current ratio stands at approximately 1.7x, which measures the company's ability to cover short-term obligations with short-term assets. Free cash flow was roughly negative $298.0 million for the year, representing the cash remaining after the business pays for its operations and equipment.

The case for Joby Aviation

Joby Aviation is developing all-electric vertical takeoff and landing aircraft designed for urban air transportation services. The company has secured high-profile partnerships with Toyota Motor for manufacturing and Delta Air Lines for premium airport shuttles. It also maintains contracts with the U.S. Department of Defense and recently acquired Blade Air Mobility to expand its potential customer base.

In FY 2025, revenue reached roughly $53.4 million, a massive increase from the previous year as early service operations began. The company reported a net loss of close to $929.8 million for the period. This produced a net margin of approximately negative 1,740.5%, reflecting the heavy spending required to bring new aviation technology to market.

According to its December 2025 balance sheet, the company maintains a debt-to-equity ratio of 0.0x. This is paired with a current ratio of roughly 13.5x, suggesting a very high level of liquidity available to fund ongoing development. Free cash flow for the year was approximately negative $563.8 million, which accounts for the cash used in operations and building out its initial fleet.

Risk profile comparison

Advance Auto Parts is currently navigating a complex restructuring plan that involves transforming its supply chain and updating aging IT systems. The company faces stiff competition from major players like AutoZone and O'Reilly Automotive that are expanding their physical footprints and adopting new technologies. Additionally, potential new trade tariffs and rising fuel costs could increase expenses or reduce consumer spending on car maintenance.

Joby Aviation faces significant regulatory risks as it seeks necessary certifications from the Federal Aviation Administration to begin full commercial flights. The company must also prove it can scale manufacturing to a high volume while maintaining safety standards across its fleet. Any accidents or delays in vertiport construction could harm its reputation and force the company to seek dilutive capital from investors.

Valuation comparison

Advance Auto Parts presents a traditional value profile with a low P/S ratio, while Joby Aviation remains a speculative play without a meaningful Forward P/E.

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

I'd go with Advance Auto Parts. To give Joby its due, the company is making faster progress than most people expected. Its Blade air taxi business just posted its best quarter on record, and its first passenger flights in Texas are expected next month. The Toyota joint venture adds manufacturing scale that could matter a great deal down the road. For investors with a very long horizon and a high tolerance for risk, Joby is worth watching.

But Joby is burning through cash at a pace that dwarfs its revenue, and commercial scale is still years away. The gap between what the company is spending and what it is earning is one of the widest in the eVTOL industry.

Advance Auto Parts is a steadier, more grounded story. Comparable sales growth just hit its strongest level in five years, margins are expanding, and management reaffirmed its full-year outlook. The auto parts market is large and durable, and the turnaround is showing up in the numbers. For a long-term investor who wants a business that is already improving rather than one still years from proving itself, Advance Auto Parts is the more comfortable pick right now.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.