AVAV vs JOBY: How AeroVironment and Joby Aviation Compare (2026)

AeroVironment (AVAV) is a defense technology company specializing in unmanned and autonomous systems. It is best known for small, man-portable drones used by militaries for reconnaissance and surveillance, and for loitering munitions, notably the Switchblade family, which are precision-strike drones that have drawn significant attention from conflicts and rising global demand. AeroVironment also builds larger unmanned aircraft systems, uncrewed ground robots, and develops autonomy software and counter-drone solutions. Its primary customer is the US Department of Defense, with growing international and allied-government sales. The company has expanded through acquisitions into adjacent areas such as space, loitering munitions, and autonomy. The investment story centers on the structural growth of drones and autonomous systems in modern warfare, where small, attritable, intelligent systems are reshaping how militaries operate. Founded in 1971 and historically associated with pioneering work in efficient flight, AeroVironment is headquartered in Arlington, Virginia, and is a mid-cap defense growth company tied closely to defense budgets and procurement.

Full AVAV guide

Joby Aviation designs and intends to manufacture and operate electric vertical takeoff and landing (eVTOL) aircraft, small piloted air taxis built to carry a few passengers quietly over congested cities. Its plan is to make money as a vertically integrated transportation-as-a-service business: build its own aircraft (with manufacturing practices borrowed from partner and investor Toyota), then sell rides directly to passengers, distributed through partners like Uber and the Blade passenger business it acquired. Until its own aircraft enters revenue service, nearly all reported revenue comes from that acquired Blade helicopter operation rather than from eVTOL flights.

Full JOBY guide

Both fit overlapping themes, but they are not interchangeable. AeroVironment is best understood through its own drivers, and Joby Aviation through its. The useful comparison is which set of drivers and risks you want exposure to.

• AVAV drivers: Loitering munitions demand; Small unmanned systems franchise.
• JOBY drivers: Lead in FAA certification; Strategic backers and balance sheet.

AVAV. AeroVironment trades on a growth multiple that reflects its leadership in fast-growing drone and loitering-munition categories rather than current earnings. The valuation embeds expectations of sustained defense procurement growth and successful expansion into autonomy and space. It is more volatile and richly valued than traditional defense primes, sensitive to order timing and conflict-driven demand swings.

JOBY. For a pre-commercial company, the most important figures are cash and burn rather than earnings: roughly $2.5 billion of liquidity against a few hundred million of cash use per half-year implies several years of runway, but no clear path to profitability yet. The reported revenue largely reflects the acquired Blade helicopter operation, not Joby's own air taxis, so traditional valuation multiples are not very meaningful. At a market cap near $9 billion against minimal core revenue, the stock prices in a commercial future that still depends on FAA certification and scale.

Headline figures (approximate, early 2026): AVAV shows revenue (ttm) ~$800 million-$1 billion, operating margin ~low-double-digit percent, net income (ttm) Modest; growth reinvested; JOBY shows cash & short-term investments ~$2.5 billion (Q1 2026), revenue (q1 2026) ~$24 million (mostly acquired Blade passenger business, not eVTOL), fy2026 revenue guidance ~$105 to $115 million. A cheaper-looking multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is actually compounding.

Both share a theme, but they suit different temperaments. AeroVironment's case leans on loitering munitions demand, and Joby Aviation's on lead in faa certification. A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: AeroVironment depends heavily on US defense procurement, so budget cycles, appropriations timing, and program decisions cause lumpy, hard-to-predict revenue and order flow. For JOBY, joby is effectively pre-revenue on its core product: the bulk of its reported revenue comes from the acquired Blade helicopter business, not its own eVTOL aircraft, and it posted a net loss of roughly $110 million in Q1 2026.

Pick AVAV if you believe its drivers more; JOBY if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the AVAV and JOBY guides.

AVAV and JOBY are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined AVAV and JOBY exposure against your real portfolio. It is not an investment adviser.