Critical Survey: Audioeye (NASDAQ:AEYE) vs. Arqit Quantum (NASDAQ:ARQQ)

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

Risk and Volatility

Audioeye has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Arqit Quantum has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Audioeye and Arqit Quantum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Audioeye	1	1	4	0	2.50
Arqit Quantum	1	0	1	0	2.00

Audioeye currently has a consensus price target of $14.63, indicating a potential upside of 102.84%. Arqit Quantum has a consensus price target of $60.00, indicating a potential upside of 271.52%. Given Arqit Quantum’s higher possible upside, analysts clearly believe Arqit Quantum is more favorable than Audioeye.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Audioeye	-7.63%	56.26%	11.17%
Arqit Quantum	N/A	N/A	N/A

Insider and Institutional Ownership

51.1% of Audioeye shares are owned by institutional investors. Comparatively, 16.6% of Arqit Quantum shares are owned by institutional investors. 28.8% of Audioeye shares are owned by insiders. Comparatively, 54.6% of Arqit Quantum shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Audioeye and Arqit Quantum”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Audioeye	$40.31 million	2.24	-$3.08 million	($0.24)	-30.04
Arqit Quantum	$530,000.00	465.91	-$35.34 million	N/A	N/A

Audioeye has higher revenue and earnings than Arqit Quantum.

Summary

Audioeye beats Arqit Quantum on 7 of the 12 factors compared between the two stocks.

About Audioeye

AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet and other media to people regardless of their device, location, or disabilities in the United States. Its software and services enable conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The company offers AudioEye, an always-on testing, remediation, and monitoring solution that improves conformance with web content accessibility guidelines; identifies and fixes the accessibility errors and addresses a range of disabilities, including dyslexia, color blindness, epilepsy, and others; and provides additional solutions to provide for enhanced compliance and accessibility, including periodic auditing, human assisted technological remediations, and legal support services, as well as PDF remediation services, Native Mobile App and audit reports to help customers with their digital accessibility needs. The company serves small- and medium-sized businesses, corporate enterprises, non-profit organizations, and federal government agencies, as well as federal, state, and local governments and agencies through content management system partners, platform and agency partners, authorized resellers, and the marketplace. AudioEye, Inc. was incorporated in 2005 and is based in Tucson, Arizona.

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.