Critical Contrast: Archer Aviation (NYSE:ACHR) and Boeing (NYSE:BA)

Boeing (NYSE:BA) and Archer Aviation (NYSE:ACHR) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Insider and Institutional Ownership

64.8% of Boeing shares are owned by institutional investors. Comparatively, 59.3% of Archer Aviation shares are owned by institutional investors. 0.1% of Boeing shares are owned by company insiders. Comparatively, 5.6% of Archer Aviation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Boeing has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Archer Aviation has a beta of 3.59, meaning that its share price is 259% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Boeing and Archer Aviation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boeing	3	8	21	1	2.61
Archer Aviation	1	2	6	0	2.56

Boeing presently has a consensus price target of $246.92, indicating a potential upside of 40.83%. Archer Aviation has a consensus price target of $11.00, indicating a potential upside of 162.84%. Given Archer Aviation’s higher possible upside, analysts plainly believe Archer Aviation is more favorable than Boeing.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boeing	7.98%	-42.40%	-1.53%
Archer Aviation	N/A	-40.74%	-35.93%

Valuation and Earnings

This table compares Boeing and Archer Aviation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boeing	$94.91 billion	1.46	$2.23 billion	$9.19	19.08
Archer Aviation	$300,000.00	10,741.78	-$618.20 million	($1.08)	-3.87

Boeing has higher revenue and earnings than Archer Aviation. Archer Aviation is trading at a lower price-to-earnings ratio than Boeing, indicating that it is currently the more affordable of the two stocks.

Summary

Boeing beats Archer Aviation on 10 of the 15 factors compared between the two stocks.

About Boeing

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through Commercial Airplanes; Defense, Space & Security; and Global Services segments. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for passenger and cargo requirements, as well as provides fleet support services. The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration. The Global Services segment offers products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services to commercial and defense customers. The Boeing Company was incorporated in 1916 and is based in Arlington, Virginia.

About Archer Aviation

Archer Aviation Inc., together with its subsidiaries, engages in designs, develops, and operates electric vertical takeoff and landing aircraft for use in urban air mobility. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. The company is headquartered in San Jose, California.