Reviewing Arqit Quantum (NASDAQ:ARQQ) and Astera Labs (NASDAQ:ALAB)

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

Earnings and Valuation

This table compares Astera Labs and Arqit Quantum”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astera Labs	$723.04 million	42.52	-$83.42 million	$1.11	163.96
Arqit Quantum	$530,000.00	767.38	-$35.34 million	N/A	N/A

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

Volatility & Risk

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

Insider & Institutional Ownership

60.5% of Astera Labs shares are held by institutional investors. Comparatively, 16.6% of Arqit Quantum shares are held by institutional investors. 12.5% of Astera Labs shares are held by insiders. Comparatively, 54.6% of Arqit Quantum shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Astera Labs and Arqit Quantum, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astera Labs	0	8	16	1	2.72
Arqit Quantum	1	0	1	0	2.00

Astera Labs presently has a consensus target price of $190.63, indicating a potential upside of 4.74%. Arqit Quantum has a consensus target price of $60.00, indicating a potential upside of 125.56%. Given Arqit Quantum’s higher possible upside, analysts plainly believe Arqit Quantum is more favorable than Astera Labs.

Summary

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

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.

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.