Financial Analysis: Archer Aviation (NYSE:ACHR) & New Horizon Aircraft (NASDAQ:HOVR)

Archer Aviation (NYSE:ACHR) and New Horizon Aircraft (NASDAQ:HOVR) are both small-cap aerospace companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Archer Aviation and New Horizon Aircraft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Archer Aviation	0	1	4	0	2.80
New Horizon Aircraft	0	0	0	0	N/A

Archer Aviation currently has a consensus price target of $9.00, suggesting a potential upside of 191.26%. Given Archer Aviation’s higher probable upside, equities research analysts clearly believe Archer Aviation is more favorable than New Horizon Aircraft.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Archer Aviation	N/A	-105.79%	-73.17%
New Horizon Aircraft	N/A	N/A	N/A

Valuation & Earnings

This table compares Archer Aviation and New Horizon Aircraft’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	-$457.90 million	($1.63)	-1.90
New Horizon Aircraft	N/A	N/A	-$8.16 million	N/A	N/A

Insider and Institutional Ownership

59.3% of Archer Aviation shares are owned by institutional investors. Comparatively, 66.0% of New Horizon Aircraft shares are owned by institutional investors. 27.2% of Archer Aviation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Archer Aviation has a beta of 2.32, indicating that its share price is 132% more volatile than the S&P 500. Comparatively, New Horizon Aircraft has a beta of -0.56, indicating that its share price is 156% less volatile than the S&P 500.

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 New Horizon Aircraft

New Horizon Aircraft Ltd., an aerospace original equipment manufacturer company, focuses on designing and developing hybrid electric vertical takeoff and landing (eVTOL) aircraft for the regional air mobility market. It is developing Cavorite X7, a hybrid electric 7-seat aircraft that can take off and land vertically. The company was founded in 2013 and is headquartered in Lindsay, Canada.