Archer Aviation vs. Kraken Robotics: Defense Stock Investment Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Market Performance Comparison: Archer Aviation recorded $1.6 million in revenue in Q1 2023, despite no sales last year, with a market cap of approximately $4.2 billion, indicating potential in the eVTOL aircraft sector; meanwhile, Kraken Robotics achieved sales of about CAD 102 million (approximately $72 million) in 2025, with a market cap of around $1.7 billion, showcasing strong growth in marine technology.
- Profitability Analysis: Kraken reported a net income of CAD 2.9 million (around $2.1 million) last year, while Archer posted a net loss of $618.2 million, highlighting Kraken's superior profitability, with a gross margin of 62.1% last year and guidance of 55%-60% for this year.
- Strategic Partnership Opportunities: Both companies have partnered with Anduril, with Archer developing military hybrid VTOL aircraft and Kraken's battery and sensor technologies utilized in Anduril's underwater drones, demonstrating synergistic effects in defense technology.
- Acquisition and Expansion Potential: Kraken is expanding its business through the acquisition of Covelya, expected to push its market cap closer to $2 billion, and the integration of Covelya's technologies will create cross-selling opportunities, enhancing market competitiveness, while Archer must overcome profitability challenges to achieve rapid growth.
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Analyst Views on ACHR
Wall Street analysts forecast ACHR stock price to rise
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 5.360
Low
8.00
Averages
12.40
High
18.00
Current: 5.360
Low
8.00
Averages
12.40
High
18.00
About ACHR
Archer Aviation Inc. is an aerospace company. It is engaged in providing customers with advanced aircraft and related technologies and services in the United States and internationally in both the commercial and defense sectors. Its commercial line of business consists of the sale of its commercial aircraft (Archer Direct), such as Midnight, to aircraft operators as well as technologies and services related thereto, including commercial launch (certification, testing, training, demonstration, market survey and early trial operations), and maintenance and repair. Its defense line of business consists of the sale of aircraft and related technologies for defense applications. Its initial product is intended to be a hybrid-propulsion, vertical take-off and landing (VTOL) aircraft. Its Midnight aircraft is designed around its proprietary 12-tilt-6 distributed electric propulsion platform. It carries four passengers plus a pilot. The aircraft is purpose-built for air taxi operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Archer vs. Kraken: Leaders in Emerging Technologies
- Market Outlook: Archer Aviation recorded $1.6 million in revenue in Q1 2023, despite no sales last year, and expects to commence commercial flights this year, with a market cap of approximately $4.2 billion, indicating its potential in the eVTOL market.
- Financial Performance: Kraken Robotics achieved sales of approximately CA$102 million (about $72 million USD) in 2025 and net income of CA$2.9 million (around $2.1 million) last year, showcasing strong growth momentum in the subsea technology sector.
- Strategic Partnerships: Archer collaborates with Anduril to develop hybrid VTOL aircraft for military use, while Kraken's battery and sensor technologies are utilized in Anduril's unmanned underwater drones, enhancing cross-selling opportunities across their customer bases.
- Market Competition: Despite Kraken's lower market capitalization, its commercialization ramp is significantly further along, and with Anduril set to accelerate production of underwater drone platforms in the coming years, Kraken is poised for powerful performance catalysts.
See More
Archer Aviation vs. Kraken Robotics: Defense Stock Investment Analysis
- Market Performance Comparison: Archer Aviation recorded $1.6 million in revenue in Q1 2023, despite no sales last year, with a market cap of approximately $4.2 billion, indicating potential in the eVTOL aircraft sector; meanwhile, Kraken Robotics achieved sales of about CAD 102 million (approximately $72 million) in 2025, with a market cap of around $1.7 billion, showcasing strong growth in marine technology.
- Profitability Analysis: Kraken reported a net income of CAD 2.9 million (around $2.1 million) last year, while Archer posted a net loss of $618.2 million, highlighting Kraken's superior profitability, with a gross margin of 62.1% last year and guidance of 55%-60% for this year.
- Strategic Partnership Opportunities: Both companies have partnered with Anduril, with Archer developing military hybrid VTOL aircraft and Kraken's battery and sensor technologies utilized in Anduril's underwater drones, demonstrating synergistic effects in defense technology.
- Acquisition and Expansion Potential: Kraken is expanding its business through the acquisition of Covelya, expected to push its market cap closer to $2 billion, and the integration of Covelya's technologies will create cross-selling opportunities, enhancing market competitiveness, while Archer must overcome profitability challenges to achieve rapid growth.
See More
Archer Aviation's Progress and Challenges in Flying Cars
- Flying Car Ambitions: Archer Aviation's Midnight eVTOL aircraft aims to fly at speeds nearing 150 miles per hour above city streets, yet it has yet to complete a piloted transition flight, indicating its technology is still in early development.
- Poor Market Performance: Archer's stock is currently trading nearly 50% below its initial listing price, reflecting market concerns about its future profitability, as the company has not generated significant revenue and faces substantial financial pressures.
- Tight Financial Situation: Although Archer has approximately $1.8 billion in cash and investments, its multi-million dollar quarterly cash burn suggests it may require fresh capital within the next two to three years to sustain operations.
- FAA Certification Challenges: Archer has completed Phase 3 of the FAA's four-phase certification process, becoming the first eVTOL company to do so, but it still faces significant hurdles to obtain final certification and is lagging behind Joby Aviation, which is in a more advanced testing stage.
See More
Joby and Archer's Legal Dispute Escalates
- Escalating Legal Dispute: Joby has filed a lawsuit against Archer, alleging that former employee Kivork stole trade secrets and disclosed confidential information about strategic partners, highlighting the fierce competition between the two companies for FAA commercial approval.
- Court Ruling Impact: A Northern California judge dismissed several claims from Joby but allowed the misappropriation of confidential information against Archer to proceed, indicating that Joby still has a chance in the legal battle, which could affect its stock performance.
- Counterclaims and Rebuttals: Archer's counterclaims involve fraud and import misclassification, which were dismissed by the judge, yet Archer has the opportunity to refile by June 29, potentially impacting investor confidence in its future.
- Importance of FAA Approval: Despite the ongoing legal disputes, investors should focus on both companies' progress toward obtaining FAA commercial approval, as failure to secure this approval would have a far greater impact on stock prices than the legal issues at hand.
See More
Joby and Archer Lawsuits Progress in California Court
- Lawsuit Developments: Joby Aviation and Archer Aviation have filed lawsuits against each other in California district court, with some of Joby's claims allowed to proceed while all of Archer's counterclaims were dismissed, highlighting the fierce competition in the electric vertical takeoff and landing (eVTOL) market.
- Core Allegations: Joby alleges that Archer and former employee Kivork stole trade secrets and disclosed confidential information regarding an exclusive agreement with a real estate developer, and while some claims were dismissed, the core allegations can still move forward, which is crucial for Joby's case.
- Counterclaim Dismissal: Archer's counterclaims against Joby, particularly those related to fraud and import misclassification, were dismissed due to insufficient evidence, providing Joby with a temporary legal victory, although both companies can refile amended claims in the future.
- Market Impact: While the legal disputes may have limited immediate effects on stock prices, investors should focus on the companies' progress toward obtaining FAA commercial approval, as failure to secure this approval could significantly impact their share prices.
See More
Investment Choice Between Electric Aviation and Defense Manufacturing
- Archer Aviation's Market Potential: Archer Aviation focuses on electric vertical takeoff and landing aircraft, expecting to generate $300,000 in revenue for FY 2025, despite a net loss of $618.2 million, highlighting the high-risk, high-reward potential in the urban air mobility market.
- Karman's Financial Stability: Karman achieved $471.5 million in revenue for FY 2025, a 36.6% increase year-over-year, reporting a net income of $17.4 million with a net margin of 3.7%, indicating its stability and profitability in the defense sector.
- Risk Profile Comparison: Archer Aviation faces stringent FAA certification requirements and will likely need to raise more capital to address ongoing losses, while Karman relies on a few major customers, exposing it to revenue concentration risks and uncertainties in government contracts.
- Valuation Comparison: Archer Aviation has a forward P/E ratio of 58.1, indicating future growth potential, while Karman's P/E ratio stands at 84.4; despite strong revenue growth, its stock price is near a 52-week low, potentially offering a buying opportunity for investors.
See More
Archer vs. Kraken: Leaders in Emerging Technologies
- Market Outlook: Archer Aviation recorded $1.6 million in revenue in Q1 2023, despite no sales last year, and expects to commence commercial flights this year, with a market cap of approximately $4.2 billion, indicating its potential in the eVTOL market.
- Financial Performance: Kraken Robotics achieved sales of approximately CA$102 million (about $72 million USD) in 2025 and net income of CA$2.9 million (around $2.1 million) last year, showcasing strong growth momentum in the subsea technology sector.
- Strategic Partnerships: Archer collaborates with Anduril to develop hybrid VTOL aircraft for military use, while Kraken's battery and sensor technologies are utilized in Anduril's unmanned underwater drones, enhancing cross-selling opportunities across their customer bases.
- Market Competition: Despite Kraken's lower market capitalization, its commercialization ramp is significantly further along, and with Anduril set to accelerate production of underwater drone platforms in the coming years, Kraken is poised for powerful performance catalysts.
See More
Archer Aviation vs. Kraken Robotics: Defense Stock Investment Analysis
- Market Performance Comparison: Archer Aviation recorded $1.6 million in revenue in Q1 2023, despite no sales last year, with a market cap of approximately $4.2 billion, indicating potential in the eVTOL aircraft sector; meanwhile, Kraken Robotics achieved sales of about CAD 102 million (approximately $72 million) in 2025, with a market cap of around $1.7 billion, showcasing strong growth in marine technology.
- Profitability Analysis: Kraken reported a net income of CAD 2.9 million (around $2.1 million) last year, while Archer posted a net loss of $618.2 million, highlighting Kraken's superior profitability, with a gross margin of 62.1% last year and guidance of 55%-60% for this year.
- Strategic Partnership Opportunities: Both companies have partnered with Anduril, with Archer developing military hybrid VTOL aircraft and Kraken's battery and sensor technologies utilized in Anduril's underwater drones, demonstrating synergistic effects in defense technology.
- Acquisition and Expansion Potential: Kraken is expanding its business through the acquisition of Covelya, expected to push its market cap closer to $2 billion, and the integration of Covelya's technologies will create cross-selling opportunities, enhancing market competitiveness, while Archer must overcome profitability challenges to achieve rapid growth.
See More
Archer Aviation's Progress and Challenges in Flying Cars
- Flying Car Ambitions: Archer Aviation's Midnight eVTOL aircraft aims to fly at speeds nearing 150 miles per hour above city streets, yet it has yet to complete a piloted transition flight, indicating its technology is still in early development.
- Poor Market Performance: Archer's stock is currently trading nearly 50% below its initial listing price, reflecting market concerns about its future profitability, as the company has not generated significant revenue and faces substantial financial pressures.
- Tight Financial Situation: Although Archer has approximately $1.8 billion in cash and investments, its multi-million dollar quarterly cash burn suggests it may require fresh capital within the next two to three years to sustain operations.
- FAA Certification Challenges: Archer has completed Phase 3 of the FAA's four-phase certification process, becoming the first eVTOL company to do so, but it still faces significant hurdles to obtain final certification and is lagging behind Joby Aviation, which is in a more advanced testing stage.
See More
Joby and Archer's Legal Dispute Escalates
- Escalating Legal Dispute: Joby has filed a lawsuit against Archer, alleging that former employee Kivork stole trade secrets and disclosed confidential information about strategic partners, highlighting the fierce competition between the two companies for FAA commercial approval.
- Court Ruling Impact: A Northern California judge dismissed several claims from Joby but allowed the misappropriation of confidential information against Archer to proceed, indicating that Joby still has a chance in the legal battle, which could affect its stock performance.
- Counterclaims and Rebuttals: Archer's counterclaims involve fraud and import misclassification, which were dismissed by the judge, yet Archer has the opportunity to refile by June 29, potentially impacting investor confidence in its future.
- Importance of FAA Approval: Despite the ongoing legal disputes, investors should focus on both companies' progress toward obtaining FAA commercial approval, as failure to secure this approval would have a far greater impact on stock prices than the legal issues at hand.
See More
Joby and Archer Lawsuits Progress in California Court
- Lawsuit Developments: Joby Aviation and Archer Aviation have filed lawsuits against each other in California district court, with some of Joby's claims allowed to proceed while all of Archer's counterclaims were dismissed, highlighting the fierce competition in the electric vertical takeoff and landing (eVTOL) market.
- Core Allegations: Joby alleges that Archer and former employee Kivork stole trade secrets and disclosed confidential information regarding an exclusive agreement with a real estate developer, and while some claims were dismissed, the core allegations can still move forward, which is crucial for Joby's case.
- Counterclaim Dismissal: Archer's counterclaims against Joby, particularly those related to fraud and import misclassification, were dismissed due to insufficient evidence, providing Joby with a temporary legal victory, although both companies can refile amended claims in the future.
- Market Impact: While the legal disputes may have limited immediate effects on stock prices, investors should focus on the companies' progress toward obtaining FAA commercial approval, as failure to secure this approval could significantly impact their share prices.
See More
Investment Choice Between Electric Aviation and Defense Manufacturing
- Archer Aviation's Market Potential: Archer Aviation focuses on electric vertical takeoff and landing aircraft, expecting to generate $300,000 in revenue for FY 2025, despite a net loss of $618.2 million, highlighting the high-risk, high-reward potential in the urban air mobility market.
- Karman's Financial Stability: Karman achieved $471.5 million in revenue for FY 2025, a 36.6% increase year-over-year, reporting a net income of $17.4 million with a net margin of 3.7%, indicating its stability and profitability in the defense sector.
- Risk Profile Comparison: Archer Aviation faces stringent FAA certification requirements and will likely need to raise more capital to address ongoing losses, while Karman relies on a few major customers, exposing it to revenue concentration risks and uncertainties in government contracts.
- Valuation Comparison: Archer Aviation has a forward P/E ratio of 58.1, indicating future growth potential, while Karman's P/E ratio stands at 84.4; despite strong revenue growth, its stock price is near a 52-week low, potentially offering a buying opportunity for investors.
See More
