Comparing Arqit Quantum (NASDAQ:ARQQ) & Astera Labs (NASDAQ:ALAB)

Arqit Quantum (NASDAQ:ARQQ) and Astera Labs (NASDAQ:ALAB) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a summary of current ratings and target prices for Arqit Quantum and Astera Labs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arqit Quantum	1	0	1	0	2.00
Astera Labs	0	8	15	1	2.71

Arqit Quantum presently has a consensus price target of $60.00, indicating a potential upside of 129.18%. Astera Labs has a consensus price target of $188.17, indicating a potential upside of 4.21%. Given Arqit Quantum’s higher probable upside, analysts clearly believe Arqit Quantum is more favorable than Astera Labs.

Volatility and Risk

Arqit Quantum has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500. Comparatively, Astera Labs has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Valuation and Earnings

This table compares Arqit Quantum and Astera Labs”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arqit Quantum	$530,000.00	755.37	-$35.34 million	N/A	N/A
Astera Labs	$396.29 million	76.96	-$83.42 million	$1.11	162.67

Arqit Quantum has higher earnings, but lower revenue than Astera Labs.

Profitability

This table compares Arqit Quantum and Astera Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arqit Quantum	N/A	N/A	N/A
Astera Labs	27.50%	13.48%	12.27%

Institutional and Insider Ownership

16.6% of Arqit Quantum shares are held by institutional investors. Comparatively, 60.5% of Astera Labs shares are held by institutional investors. 54.6% of Arqit Quantum shares are held by insiders. Comparatively, 12.5% of Astera Labs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Astera Labs beats Arqit Quantum on 8 of the 13 factors compared between the two stocks.

About Arqit Quantum

Arqit Quantum Inc. provides cybersecurity services through satellite and terrestrial platforms in the United Kingdom. It offers QuantumCloud, a Platform as a Service that creates unbreakable software encryption keys. The company also provides maintenance and support, and professional services. Arqit Quantum Inc. is based in London, the United Kingdom.

About Astera Labs

Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.