Key Points
-
Archer Aviation is scaling its electric vertical takeoff and landing aircraft business through major airline and defense partnerships.
-
AST SpaceMobile aims to eliminate global dead zones by connecting standard smartphones directly to its satellite network.
-
Which high-growth disruptor belongs in your long-term portfolio?
- 10 stocks we like better than Archer Aviation ›
Choosing between Archer Aviation Inc (NYSE:ACHR) and AST SpaceMobile Inc (NASDAQ:ASTS) requires weighing the future of urban air mobility against the promise of universal satellite-based cellular connectivity for everyday smartphones.
Archer focuses on electric flight to bypass city traffic, while AST SpaceMobile builds a space-based network to bridge global communication gaps. Both companies represent high-risk, high-reward plays in the industrial stocks and communications space, attracting investors eager to capitalize on disruptive technology early in its commercialization.
The case for Archer Aviation
Archer designs and develops electric vertical takeoff and landing (eVTOL) aircraft, primarily its flagship Midnight model. Its commercial strategy relies on collaborations with airline operators like United Airlines (NASDAQ:UAL) and infrastructure partners for vertiports. Customer concentration like this adds a layer of risk to the business, though the recent acquisition of Boeing Co (NYSE:BA) subsidiaries Wisk Aero and SkyGrid expands its technological footprint.
For fiscal year 2025, Archer Aviation reported revenue of just $300,000. This early stage revenue was accompanied by a net loss of approximately $618.2 million. This reflects a company still in its pre-commercial phase as it pursues aircraft type and production certification, involving heavy spending on research and development before large-scale aircraft deliveries can begin.
As of its December 2025 balance sheet, the debt-to-equity ratio was 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 so-called current ratio measures a company’s ability to pay short-term obligations with assets that can be converted to cash within one year. As of its December 2025 balance sheet, the current ratio stands at approximately 19.9x.
Archer reported a debt-to-equity ratio of about 0.1x, which compares its total debt to the value owned by shareholders. Free cash flow was roughly negative $511.7 million, calculated as cash from operations minus capital expenditures.
The case for AST SpaceMobile
AST SpaceMobile is building the first space-based cellular broadband network designed to connect directly to standard smartphones for commercial and government use. Its strategy, detailed in its latest annual report, relies on partnering with mobile network operators like AT&T Inc (NYSE:T) and Verizon Communications (NYSE:VZ) to fill coverage gaps for nearly 3 billion subscribers. With definitive agreements with these major carriers and various U.S. government agencies, customer concentration like this adds a layer of risk to the business. That said, it also counts Vodafone Group (NASDAQ:VOD) and Saudi Telecom Co as strategic international partners who help it navigate local regulatory markets.
In FY 2025, revenue reached approximately $70.9 million, a substantial jump from the $4.4 million reported in the prior fiscal year. The company reported a net loss of nearly $342 million for the period. While revenue growth is accelerating as the company begins its commercial rollout, profitability remains a distant goal during this build-out phase.
The current debt-to-equity ratio is roughly 1.2x, showing the company relies more on debt than equity to fund its operations. Based on the December 2025 balance sheet, the current ratio is roughly 16.4x. This indicates a high level of liquid assets relative to near-term liabilities. Free cash flow, which is cash flow from operations minus capital expenditures, was more than negative $1.1 billion for FY 2025, as the firm invested heavily in its proprietary manufacturing and launch capabilities.
Risk profile comparison
Archer faces significant regulatory hurdles, as it is heavily dependent on the FAA for aircraft certification and urban air mobility operations. The company also deals with manufacturing risks since it lacks experience in high-volume production and relies on third-party suppliers for custom parts. Furthermore, integrating newly acquired units from Boeing involves complex management of diverse technologies and personnel that could divert management resources.
AST SpaceMobile operates in a capital-intensive environment where satellite launch delays or deployment failures could derail the entire business model. The company must also navigate complex multi-jurisdictional regulatory approvals to access the necessary wireless spectrum. Competition in the satellite space from entities like Amazon.com Inc (NASDAQ:AMZN) or the Starlink division of Space Exploration Technologies Inc (NASDAQ:SPCX) remains a constant threat to its long-term adoption goals.
Valuation comparison
AST SpaceMobile appears cheaper on a price-to-sales basis, while Archer Aviation carries a much higher multiple due to its extremely early stage of revenue generation.
MetricArcher AviationAST SpaceMobileForward P/En/an/aP/S ratio668x171x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Archer gained significant credibility in the market through a purchase agreement with United Airlines (NASDAQ:UAL)to serve as taxis, thereby extending the airline’s services. The contract isn’t guaranteed to be executed in full, however.
Still, Archer is making progress toward executing on that deal. For one, the federal government created a framework in 2025 for real-world testing of eVTOL aircraft, a concrete step toward making Archer’s vision a reality. Other countries, including Japan, South Korea, and Saudi Arabia, are developing similar regulatory frameworks. Much has to happen for Archer’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 among U.S. leadership.
Archer is taking steps to refurbish a small Los Angeles airport, Hawthorne, for use as its testing grounds and is working to scale up its manufacturing capabilities to eventually reach capacity for 50 planes a year. Executives at the business have an initial plan to focus on military and cargo uses for its plane, which would be an easier path to early revenue. Future estimates are 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.
AST SpaceMobile expects its space-based network to give it a significant business in a few years. Essentially, AST SpaceMobile is a direct-to-device play to provide full mobile phone compatibility for major carriers without the need for specialized equipment. Many of its potential clients are also equity holders in the company, including AT&T, Verizon, Bell Canada, Rakuten, Vodafone, Alphabet Inc (NASDAQ:GOOGL), American Tower (NYSE:AMT), and Telus (NYSE:TU).
By the end of 2026, the company should have 45 satellites, which will allow it to fully service the U.S., and that should start to supercharge revenue growth. For fiscal 2026, Wall Street sees $149 million in sales, jumping to $725 million the following year, when the company is projected to turn its first modest profit. Free cash flow appears much more manageable, with analysts expecting positive free cash flow in 2029.
Both companies are fast growers, but AST Spacemobile appears to have a faster path to significant revenue and relatively high moats to more competitors entering. Archer, meanwhile, not only has to deal with EV planmakers like Joby Aviation (NYSE:JOBY), but the conventional small jet sector too.
For long-term growth, go with AST Spacemobile.
Should you buy stock in Archer Aviation right now?
Before you buy stock in Archer Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $429,223!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,317,883!*
Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 212% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of August 24, 2026.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile, Alphabet, Amazon, American Tower, and Boeing. The Motley Fool recommends TELUS, Verizon Communications, and Vodafone Group Public. The Motley Fool has a disclosure policy.
