Contrasting Tuya (NYSE:TUYA) and Arqit Quantum (NASDAQ:ARQQ)

Arqit Quantum (NASDAQ:ARQQ) and Tuya (NYSE:TUYA) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Volatility & Risk

Arqit Quantum has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500. Comparatively, Tuya has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Profitability

This table compares Arqit Quantum and Tuya’s 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
Tuya	15.14%	4.84%	4.35%

Insider & Institutional Ownership

16.6% of Arqit Quantum shares are owned by institutional investors. Comparatively, 11.5% of Tuya shares are owned by institutional investors. 54.6% of Arqit Quantum shares are owned by insiders. Comparatively, 2.1% of Tuya shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Arqit Quantum and Tuya”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	490.43	-$35.34 million	N/A	N/A
Tuya	$298.62 million	4.06	$5.00 million	$0.08	27.94

Tuya has higher revenue and earnings than Arqit Quantum.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Arqit Quantum and Tuya, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arqit Quantum	1	0	1	0	2.00
Tuya	0	1	1	0	2.50

Arqit Quantum presently has a consensus target price of $60.00, indicating a potential upside of 252.94%. Tuya has a consensus target price of $3.61, indicating a potential upside of 61.52%. Given Arqit Quantum’s higher probable upside, equities research analysts clearly believe Arqit Quantum is more favorable than Tuya.

Summary

Tuya beats Arqit Quantum on 6 of the 11 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 Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.