In the rapidly evolving cybersecurity landscape, CrowdStrike Holdings, Inc. and Arqit Quantum Inc. stand out with distinct approaches and technologies. Both leaders in software infrastructure, they compete through innovative cloud-delivered protection and quantum encryption solutions, respectively. This comparison explores their market positions, growth potential, and innovation strategies to help you decide which stock might best enhance your investment portfolio in 2026. Let’s uncover which company offers the most compelling opportunity.
Table of contents
Companies Overview
I will begin the comparison between CrowdStrike Holdings, Inc. and Arqit Quantum Inc. by providing an overview of these two companies and their main differences.
CrowdStrike Overview
CrowdStrike Holdings, Inc. is a US-based technology company specializing in cloud-delivered protection across endpoints, cloud workloads, identity, and data. Founded in 2011 and headquartered in Austin, Texas, CrowdStrike offers threat intelligence, managed security services, and Zero Trust identity protection through its Falcon platform. It primarily sells subscriptions worldwide via direct sales and channel partners, positioning itself as a leading player in cybersecurity software infrastructure.
Arqit Overview
Arqit Quantum Inc. is a UK-based cybersecurity firm providing services through satellite and terrestrial platforms. Based in London, Arqit offers QuantumCloud, a solution enabling devices to create encryption keys by downloading a lightweight software agent. Founded more recently, Arqit operates in the technology sector with a focus on innovative quantum encryption, targeting enhanced data security through its unique infrastructure.
Key similarities and differences
Both companies operate in the software infrastructure cybersecurity sector and trade on NASDAQ, but differ significantly in scale and technology focus. CrowdStrike is a large, established player with a broad cloud security platform and global reach, employing over 10K staff. In contrast, Arqit is a smaller, UK-based firm with under 100 employees, emphasizing quantum encryption technology via satellite. Their business models reflect these distinctions: CrowdStrike relies on subscription sales of a comprehensive platform, while Arqit focuses on niche quantum encryption services.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for CrowdStrike Holdings, Inc. (CRWD) and Arqit Quantum Inc. (ARQQ) for their most recent fiscal year.
| Metric | CrowdStrike Holdings, Inc. (CRWD) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Market Cap | 114.4B | 416M |
| Revenue | 3.95B | 530K |
| EBITDA | 295M | -36.8M |
| EBIT | 81M | -37.6M |
| Net Income | -19.3M | -35.3M |
| EPS | -0.079 | -2.56 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
CrowdStrike Holdings, Inc.
From 2021 to 2025, CrowdStrike’s revenue surged by over 350%, reflecting strong growth in sales. Net income showed improvement overall but turned slightly negative in 2025, with a net margin slipping to -0.49%. Gross margin remained robust near 75%, while EBIT margin stayed low but stable. The latest year saw a 29% revenue increase but declining EBIT and net margins, indicating rising expenses.
Arqit Quantum Inc.
Arqit’s revenue grew dramatically by more than 1000% over the period, although starting from a very low base. Despite this, the company recorded large net losses with a severely negative net margin of -6668% in 2025. Gross margin was negative, signaling higher costs than revenue. While revenue and EPS growth were favorable last year, EBIT margin remained deeply negative, reflecting ongoing operational challenges.
Which one has the stronger fundamentals?
Both companies show favorable overall income statement evaluations, but CrowdStrike boasts a substantially larger scale, positive gross margin, and consistent revenue growth with improving net income over time. Arqit, despite impressive growth rates, suffers from extreme losses and negative margins. CrowdStrike’s fundamentals appear stronger due to better profitability metrics and margin stability.
Financial Ratios Comparison
Below is a comparison of the most recent key financial ratios for CrowdStrike Holdings, Inc. and Arqit Quantum Inc., based on their fiscal year 2025 data.
| Ratios | CrowdStrike Holdings, Inc. (CRWD) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| ROE | -0.59% | -129.77% |
| ROIC | 0.70% | -127.45% |
| P/E | -5055.7 | -15.12 |
| P/B | 29.71 | 19.62 |
| Current Ratio | 1.67 | 2.69 |
| Quick Ratio | 1.67 | 2.69 |
| D/E (Debt-to-Equity) | 0.24 | 0.03 |
| Debt-to-Assets | 9.07% | 1.68% |
| Interest Coverage | -4.58 | -802.90 |
| Asset Turnover | 0.45 | 0.01 |
| Fixed Asset Turnover | 4.76 | 0.74 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0 | 0 |
Interpretation of the Ratios
CrowdStrike Holdings, Inc.
CrowdStrike’s ratios present a mixed picture with some strengths and notable weaknesses. The company shows favorable liquidity ratios (current and quick ratio at 1.67) and low leverage (debt-to-equity at 0.24), but profitability ratios like net margin (-0.49%) and return on equity (-0.59%) are unfavorable. CrowdStrike does not pay dividends, likely reflecting reinvestment in growth and R&D priorities.
Arqit Quantum Inc.
Arqit’s ratios lean mostly unfavorable, with extremely negative profitability metrics such as net margin at -6668.49% and return on equity at -129.77%. Liquidity ratios are strong (current and quick ratio at 2.69), and leverage is low (debt-to-equity at 0.03). Like CrowdStrike, Arqit does not pay dividends, which aligns with its early-stage status and investment focus.
Which one has the best ratios?
CrowdStrike exhibits a more balanced ratio profile with a near-equal split of favorable and unfavorable metrics, while Arqit’s ratios skew heavily negative, particularly in profitability and capital efficiency. Liquidity and leverage favor both firms, but CrowdStrike’s overall financial health appears comparatively stronger in terms of ratio evaluation.
Strategic Positioning
This section compares the strategic positioning of CrowdStrike and Arqit Quantum, including market position, key segments, and exposure to technological disruption:
CrowdStrike Holdings, Inc.
- Large market cap of 114B USD, operating globally with competitive pressure in cloud security.
- Key revenue from subscriptions (3.76B USD in 2025) and professional services in cybersecurity.
- Exposure to cloud security innovations; evolving cybersecurity threats requiring continuous tech updates.
Arqit Quantum Inc.
- Small market cap of 416M USD, UK-focused, facing competitive pressures in quantum cybersecurity.
- Focused on quantum encryption software delivered via satellite and terrestrial platforms.
- Dependent on emerging quantum encryption technology, a potentially disruptive but nascent field.
CrowdStrike vs Arqit Quantum Positioning
CrowdStrike’s approach is diversified with a broad subscription base and professional services, benefiting from scale but facing intense competition. Arqit is more concentrated on quantum encryption, offering niche innovation but with higher market and technological risk.
Which has the best competitive advantage?
Both companies show slightly unfavorable MOAT evaluations with growing ROIC trends, indicating improving profitability but current value destruction. CrowdStrike’s larger scale may provide more stable capital use, whereas Arqit’s niche focus involves greater uncertainty in value creation.
Stock Comparison
The past year has seen significant bullish trends for both CrowdStrike Holdings, Inc. and Arqit Quantum Inc., with notable price appreciations and recent periods of decline, reflecting dynamic trading activities and shifting investor sentiment.
Trend Analysis
CrowdStrike Holdings, Inc. (CRWD) showed a 45.71% price increase over the past 12 months, indicating a bullish trend with decelerating momentum and high volatility (std deviation 80.53). Recent months saw a 16.41% price decline, signaling a short-term bearish correction.
Arqit Quantum Inc. (ARQQ) experienced a 93.6% price rise over the past year, also bullish with deceleration and lower volatility (std deviation 11.75). However, its recent 39.03% drop suggests a sharper short-term bearish trend compared to CRWD.
Comparing both, ARQQ delivered the highest market performance over the 12-month period despite its more pronounced recent downturn, outperforming CRWD’s price appreciation.
Target Prices
Analysts present a clear consensus on target prices for CrowdStrike Holdings, Inc. and Arqit Quantum Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CrowdStrike Holdings, Inc. | 706 | 353 | 553.47 |
| Arqit Quantum Inc. | 60 | 60 | 60 |
CrowdStrike’s target consensus at 553.47 is significantly above its current price of 453.88, indicating bullish analyst sentiment. Arqit Quantum’s consensus target of 60 is more than double its current price of 26.6, suggesting high growth expectations despite increased risk.
Analyst Opinions Comparison
This section compares analysts’ ratings and key financial scores for CrowdStrike Holdings, Inc. and Arqit Quantum Inc.:
Rating Comparison
CRWD Rating
- Rating: C, classified as Very Favorable by analysts.
- Discounted Cash Flow Score: 4, indicating a Favorable rating.
- ROE Score: 1, considered Very Unfavorable.
- ROA Score: 1, considered Very Unfavorable.
- Debt To Equity Score: 3, rated Moderate for financial risk.
- Overall Score: 2, assessed as Moderate overall.
ARQQ Rating
- Rating: C, also classified as Very Favorable by analysts.
- Discounted Cash Flow Score: 2, indicating a Moderate rating.
- ROE Score: 1, considered Very Unfavorable.
- ROA Score: 1, considered Very Unfavorable.
- Debt To Equity Score: 4, rated Favorable indicating lower risk.
- Overall Score: 2, assessed as Moderate overall.
Which one is the best rated?
Both CrowdStrike and Arqit share the same overall rating and score, classified as Very Favorable with a moderate overall score of 2. CrowdStrike scores higher on discounted cash flow, while Arqit has a better debt-to-equity score.
Scores Comparison
Here is a comparison of CrowdStrike Holdings, Inc. and Arqit Quantum Inc. scores:
CRWD Scores
- Altman Z-Score: 12.38, indicating a safe zone with very low bankruptcy risk.
- Piotroski Score: 4, reflecting average financial strength and value.
ARQQ Scores
- Altman Z-Score: -0.22, indicating financial distress and high bankruptcy risk.
- Piotroski Score: 2, indicating very weak financial strength and poor value.
Which company has the best scores?
Based strictly on the provided data, CRWD shows a significantly higher Altman Z-Score in the safe zone and a better Piotroski Score than ARQQ, which is in distress and very weak respectively. CRWD thus has the stronger financial scores.
Grades Comparison
Here is a comparison of the latest available grades for CrowdStrike Holdings, Inc. and Arqit Quantum Inc.:
CrowdStrike Holdings, Inc. Grades
The following table summarizes recent grades assigned to CrowdStrike by recognized financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2026-01-13 |
| BTIG | Maintain | Buy | 2026-01-13 |
| Keybanc | Downgrade | Sector Weight | 2026-01-12 |
| Berenberg | Upgrade | Buy | 2026-01-09 |
| Stephens & Co. | Maintain | Overweight | 2025-12-18 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-18 |
| Freedom Capital Markets | Upgrade | Buy | 2025-12-11 |
| Citigroup | Maintain | Buy | 2025-12-04 |
| Goldman Sachs | Maintain | Buy | 2025-12-04 |
| Scotiabank | Maintain | Sector Outperform | 2025-12-03 |
CrowdStrike’s grades mostly indicate a positive outlook, with several upgrades to Buy and consistent Buy ratings, though some institutions hold neutral stances.
Arqit Quantum Inc. Grades
The following table presents the latest grades assigned to Arqit Quantum by a single recognized grading company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| HC Wainwright & Co. | Maintain | Buy | 2025-10-13 |
| HC Wainwright & Co. | Maintain | Buy | 2025-09-18 |
| HC Wainwright & Co. | Maintain | Buy | 2024-12-31 |
| HC Wainwright & Co. | Maintain | Buy | 2024-12-06 |
| HC Wainwright & Co. | Maintain | Buy | 2024-07-11 |
| HC Wainwright & Co. | Maintain | Buy | 2024-05-29 |
| HC Wainwright & Co. | Maintain | Buy | 2024-05-15 |
| HC Wainwright & Co. | Maintain | Buy | 2023-11-22 |
| HC Wainwright & Co. | Maintain | Buy | 2023-09-27 |
| HC Wainwright & Co. | Maintain | Buy | 2023-09-26 |
Arqit Quantum’s ratings show a consistent Buy recommendation from HC Wainwright & Co. over multiple periods, with no changes in action.
Which company has the best grades?
CrowdStrike Holdings, Inc. has received a broader range of grades from multiple reputable firms, predominantly positive with upgrades and strong Buy ratings, indicating diverse institutional confidence. Arqit Quantum Inc., while consistently rated Buy, has ratings from only one grading company. The wider analyst coverage and stronger consensus for CrowdStrike may provide investors with more robust insights into its outlook.
Strengths and Weaknesses
The following table compares key strengths and weaknesses of CrowdStrike Holdings, Inc. (CRWD) and Arqit Quantum Inc. (ARQQ) based on recent financial and operational data.
| Criterion | CrowdStrike Holdings, Inc. (CRWD) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Diversification | Moderate: Revenue mainly from subscriptions (3.76B in 2025) with growing professional services (192M) | Low: Limited product and revenue diversification |
| Profitability | Slightly unfavorable: ROIC 0.7%, net margin -0.49%, but improving ROIC trend | Unfavorable: Negative ROIC (-127.45%), large net losses |
| Innovation | Strong: Consistent investment in cybersecurity solutions | Emerging: Focus on quantum encryption but unproven scale |
| Global presence | Well-established: Large global cybersecurity footprint | Limited: Early-stage with smaller market reach |
| Market Share | Significant in cybersecurity sector | Nascent presence in quantum encryption market |
Key takeaways: CrowdStrike shows solid growth with improving profitability despite current slight value destruction, supported by a broad subscription base. Arqit is still in early development stages with substantial financial challenges and limited diversification, indicating higher risk for investors.
Risk Analysis
Below is a comparative table highlighting key risks for CrowdStrike Holdings, Inc. (CRWD) and Arqit Quantum Inc. (ARQQ) based on the most recent 2025 data:
| Metric | CrowdStrike Holdings, Inc. (CRWD) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Market Risk | Moderate (Beta 1.03) | High (Beta 2.41) |
| Debt level | Low (Debt-to-Equity 0.24) | Very Low (Debt-to-Equity 0.03) |
| Regulatory Risk | Moderate (US tech sector scrutiny) | Moderate (UK cybersecurity sector) |
| Operational Risk | Moderate (Scaling challenges) | High (Early-stage, limited scale) |
| Environmental Risk | Low (Tech sector typical) | Low (Tech sector typical) |
| Geopolitical Risk | Moderate (US global exposure) | Elevated (UK quantum tech sensitive) |
In synthesis, Arqit Quantum faces the most significant risk profile with high market volatility (beta 2.41), operational challenges due to its small scale and infancy, and financial distress signals (negative Altman Z-score). CrowdStrike exhibits moderate risk, benefiting from a strong balance sheet and safer financial footing but still subject to sector competitive pressures and moderate market fluctuations. Investors should weigh ARQQ’s high-growth potential against its elevated financial and operational risks, while CRWD offers more stability with moderate growth prospects.
Which Stock to Choose?
CrowdStrike Holdings, Inc. (CRWD) shows strong income growth with a 29.4% revenue increase in 2025, favorable gross margin at 74.9%, but struggles with negative net margin and ROE. Its debt ratios are solid, and the rating is very favorable overall.
Arqit Quantum Inc. (ARQQ) reports rapid revenue growth of 80.9% in 2025 but suffers from severely negative profitability metrics, including a net margin of -6668%, weak returns, and high operational expenses. Debt levels remain low, and the rating is very favorable but with notable financial weaknesses.
For investors, CRWD’s neutral overall financial ratios paired with favorable income trends and a strong rating might appeal to those seeking a balance of growth and improving profitability. Conversely, ARQQ’s rapid growth but unfavorable financial ratios and profitability could be more aligned with risk-tolerant investors focusing on speculative growth potential.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of CrowdStrike Holdings, Inc. and Arqit Quantum Inc. to enhance your investment decisions:
