Critical Survey: Butler National (OTCMKTS:BUKS) and Archer Aviation (NYSE:ACHR)

Archer Aviation (NYSE:ACHR) and Butler National (OTCMKTS:BUKS) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Archer Aviation and Butler National, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Archer Aviation	1	2	6	0	2.56
Butler National	0	0	0	0	0.00

Archer Aviation presently has a consensus target price of $12.14, indicating a potential upside of 44.64%. Given Archer Aviation’s stronger consensus rating and higher possible upside, analysts plainly believe Archer Aviation is more favorable than Butler National.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Archer Aviation	N/A	-49.22%	-41.46%
Butler National	19.02%	24.93%	12.84%

Risk & Volatility

Archer Aviation has a beta of 3.1, suggesting that its stock price is 210% more volatile than the S&P 500. Comparatively, Butler National has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

Earnings and Valuation

This table compares Archer Aviation and Butler National”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Archer Aviation	N/A	N/A	-$536.80 million	($1.26)	-6.66
Butler National	$83.97 million	2.93	$12.55 million	$0.25	12.30

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

Insider and Institutional Ownership

59.3% of Archer Aviation shares are owned by institutional investors. Comparatively, 5.0% of Butler National shares are owned by institutional investors. 7.7% of Archer Aviation shares are owned by company insiders. Comparatively, 17.6% of Butler National shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Butler National beats Archer Aviation on 8 of the 13 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 Butler National

Butler National Corporation, together with its subsidiaries, designs, engineers, manufactures, sells, integrates, installs, repairs, modifies, overhauls, services, and distributes a portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems in North America, Europe, the Middle East, Asia, and internationally. It operates through two segments, Aerospace Products and Professional Services. The Aerospace Products segment provides aircraft modifications to business-size aircraft, which include passenger-to-freighter configuration, radar systems, addition of aerial photography capabilities, search and rescue, environmental research, mapping, intelligence surveillance reconnaissance modifications, and stability enhancing modifications for Learjet, Beechcraft, and Cessna aircraft along with other specialized modifications. This segment manufactures, sells, and services electronics for weapon control systems that are used on government aircraft and vehicles; and sells, installs, and repairs aircraft avionics equipment, including airplane radio equipment and flight control systems, as well as troubleshoots and repairs autopilot systems. Its Professional Services segment manages Boot Hill Casino and Resort, a gaming, dining, and entertainment facility in Dodge City, Kansas. The company acquires, refurbishes, and sells airplanes, primarily Learjets; owns properties; and operates a management consulting and administrative services firm that provides business planning and financial coordination to Indian tribes interested in owning and operating casinos. It serves the aviation industry, including owners and operators of private and commercial business and government aircraft and suppliers. Butler National Corporation was incorporated in 1960 and is headquartered in New Century, Kansas.