Critical Survey: Arqit Quantum (NASDAQ:ARQQ) & Astera Labs (NASDAQ:ALAB)

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Astera Labs and Arqit Quantum, as reported by MarketBeat.com.

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

Astera Labs currently has a consensus target price of $188.17, indicating a potential upside of 15.72%. Arqit Quantum has a consensus target price of $60.00, indicating a potential upside of 123.30%. Given Arqit Quantum’s higher probable upside, analysts plainly believe Arqit Quantum is more favorable than Astera Labs.

Insider & Institutional Ownership

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

Risk & Volatility

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astera Labs	$396.29 million	69.30	-$83.42 million	$1.11	146.50
Arqit Quantum	$530,000.00	775.28	-$35.34 million	N/A	N/A

Arqit Quantum has lower revenue, but higher earnings 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.