Archer Aviation (NYSE:ACHR) and Textron (NYSE:TXT) Head-To-Head Survey

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

Volatility & Risk

Archer Aviation has a beta of 3.24, suggesting that its stock price is 224% more volatile than the S&P 500. Comparatively, Textron has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Archer Aviation	N/A	-37.76%	-32.89%
Textron	6.22%	14.63%	6.33%

Institutional and Insider Ownership

59.3% of Archer Aviation shares are owned by institutional investors. Comparatively, 86.0% of Textron shares are owned by institutional investors. 7.7% of Archer Aviation shares are owned by company insiders. Comparatively, 1.9% of Textron shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Archer Aviation and Textron, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Archer Aviation	1	2	5	0	2.50
Textron	0	9	3	1	2.38

Archer Aviation presently has a consensus target price of $12.00, indicating a potential upside of 96.34%. Textron has a consensus target price of $98.18, indicating a potential upside of 7.33%. Given Archer Aviation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Archer Aviation is more favorable than Textron.

Earnings and Valuation

This table compares Archer Aviation and Textron”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Archer Aviation	$300,000.00	15,168.76	-$618.20 million	($0.99)	-6.17
Textron	$14.80 billion	1.08	$921.00 million	$5.11	17.90

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

Summary

Textron beats Archer Aviation on 9 of the 15 factors compared between the two stocks.

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.

About Textron

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts. The Bell segment supplies military and commercial helicopters, tiltrotor aircrafts, and related spare parts and services. The Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. The Industrial segment offers blow-molded solutions, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, plastic tanks for catalytic reduction systems, and battery housing systems for use in electric vehicles primarily to automobile original equipment manufacturers (OEMs); and golf cars, off-road utility vehicles, powersports products, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The Textron eAviation segment manufactures and sells light aircraft and gliders with electric and combustion engines; and provides other research and development initiatives related to sustainable aviation solutions. The Finance segment offers financing services to purchase new and pre-owned aviation aircraft and Bell helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.