Reviewing Archer Aviation (NYSE:ACHR) & AeroVironment (NASDAQ:AVAV)

Archer Aviation (NYSE:ACHRGet Rating) and AeroVironment (NASDAQ:AVAVGet Rating) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Risk & Volatility

Archer Aviation has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, AeroVironment has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Profitability

This table compares Archer Aviation and AeroVironment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Archer Aviation N/A N/A N/A
AeroVironment -0.11% 8.14% 5.35%

Valuation & Earnings

This table compares Archer Aviation and AeroVironment’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Archer Aviation N/A N/A -$347.80 million N/A N/A
AeroVironment $394.91 million 5.27 $23.33 million ($0.03) -2,783.07

AeroVironment has higher revenue and earnings than Archer Aviation.

Analyst Recommendations

This is a breakdown of recent ratings for Archer Aviation and AeroVironment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Archer Aviation 0 1 3 0 2.75
AeroVironment 0 3 3 0 2.50

Archer Aviation currently has a consensus target price of $9.70, indicating a potential upside of 124.54%. AeroVironment has a consensus target price of $91.83, indicating a potential upside of 9.95%. Given Archer Aviation’s stronger consensus rating and higher probable upside, analysts plainly believe Archer Aviation is more favorable than AeroVironment.

Institutional and Insider Ownership

37.1% of Archer Aviation shares are owned by institutional investors. Comparatively, 85.5% of AeroVironment shares are owned by institutional investors. 7.4% of AeroVironment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

AeroVironment beats Archer Aviation on 6 of the 10 factors compared between the two stocks.

Archer Aviation Company Profile (Get Rating)

Archer Aviation Inc., an urban air mobility company, engages in designs, develops, manufactures, and operates electric vertical takeoff and landing aircrafts to carry passengers. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. Archer Aviation Inc. was incorporated in 2018 and is headquartered in Palo Alto, California.

AeroVironment Company Profile (Get Rating)

AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses. It operates in two segments, Unmanned Aircraft Systems (UAS) and Medium Unmanned Aircraft Systems (MUAS). The company supplies UAS, tactical missile systems, and related services primarily to organizations within the U.S. Department of Defense and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to ISR services. In addition, the company offers small UAS products, including spare equipment, alternative payload modules, batteries, chargers, repair services, and customer support, as well as multiple aircraft, hand-held ground control system, and spare parts and accessories. Further, it develops high-altitude pseudo-satellite UAS systems. The company was incorporated in 1971 and is headquartered in Arlington, Virginia.

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