Archer vs Joby: What's the Better eVTOL Stock to Buy Right Now? | The Motley Fool

These electric vertical take-off and landing stocks both have a lot of promise, but both are also down big this year.

Flying taxis could soon be a new way for travelers to get around busy cities. Joby Aviation (JOBY +0.87%) and Archer Aviation (ACHR -1.49%) are two leading electric vertical take-off and landing (eVTOL) companies that are getting close to obtaining approval for their respective aircraft and could soon be transporting passengers.

Investors, however, may nonetheless be disappointed that it hasn't happened yet. Meanwhile, the companies continue to burn through cash. They are risky investments, but both possess a lot of growth potential in the long run.

Joby has lost more than 60% of its value this year, while shares of Archer are down by close to 50%. But at more modest valuations, now may be a better opportunity for investors to buy one of these stocks. Below, I'll look at which one may be the better buy.

Which company is in a better cash position?

For a business that's not profitable, an important thing for investors to consider is how much cash it has on hand, and just how much it's burning through. This can provide valuable insight into which one may be in greater need of raising cash in the future and thus pose the greater dilution risk.

Here were the key numbers from their recent financials, for the period ending June 30:

Archer Aviation: $1.6 billion in cash and short-term investments, and $305.5 million used up from its day-to-day operations over the past six months.

Joby Aviation: $2.3 billion in cash and short-term investments, and $317.6 million used up from day-to-day operations in the past six months.

Both companies are burning through a comparable amount of cash, but with Joby having more near-term assets on its books, it may be less in need of cash than Archer. However, that doesn't mean Joby won't need to raise funds, but it may just require a smaller cash infusion.

Averytin News Financial update.