Head to Head Review: Rheinmetall (OTCMKTS:RNMBY) and Archer Aviation (NYSE:ACHR)

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

Institutional and Insider Ownership

59.3% of Archer Aviation shares are owned by institutional investors. 5.6% of Archer Aviation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Rheinmetall has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Archer Aviation has a beta of 3.23, indicating that its stock price is 223% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rheinmetall	$11.24 billion	4.83	$787.45 million	$2.91	79.98
Archer Aviation	$6.90 million	637.45	-$618.20 million	($1.08)	-5.29

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rheinmetall	6.45%	22.39%	6.94%
Archer Aviation	N/A	-40.74%	-35.93%

Analyst Recommendations

This is a summary of recent recommendations for Rheinmetall and Archer Aviation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rheinmetall	0	1	7	0	2.88
Archer Aviation	1	3	5	0	2.44

Archer Aviation has a consensus target price of $11.50, suggesting a potential upside of 101.33%. Given Archer Aviation’s higher possible upside, analysts plainly believe Archer Aviation is more favorable than Rheinmetall.

Summary

Rheinmetall beats Archer Aviation on 9 of the 14 factors compared between the two stocks.

About Rheinmetall

Rheinmetall AG provides mobility and security technologies worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. The Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and munition, protection systems, propellants and international projects and services. The Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, and cyberspace protection solutions, and training and simulation solutions. Its products include air defense systems; soldier systems; command, control, and reconnaissance systems; fire control systems; sensors; and simulations for the army, air force, navy, and civil applications. The Sensors and Actuators segment provides a portfolio of products comprising exhaust gas recirculation systems; throttle valves, control dampers, and exhaust flaps for electromotors; solenoid valves; actuators and valve train systems; oil, water, and vacuum pumps for passenger cars, commercial vehicles, and light and heavy-duty off-road applications; and industrial solutions. The Materials and Trade segment develops system components for the basic motors, such as engine blocks, structural components, and cylinder heads; plain bearings, and bushes; and replacement parts. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.

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.