In today’s fast-evolving cybersecurity landscape, choosing the right company to invest in demands careful analysis. CyberArk Software Ltd. and Arqit Quantum Inc. both operate in the software infrastructure sector, yet they differ significantly in scale, innovation approach, and market focus. CyberArk leverages decades of experience in privileged access security, while Arqit pioneers quantum encryption technology. This article will help you decide which company offers the most compelling investment opportunity.
Table of contents
Companies Overview
I will begin the comparison between CyberArk Software Ltd. and Arqit Quantum Inc. by providing an overview of these two companies and their main differences.
CyberArk Software Ltd. Overview
CyberArk Software Ltd. develops and markets software-based security solutions globally, focusing on privileged access management and identity and access management services. Its mission is to protect organizations from cyber threats by securing credentials, managing access, and reducing privilege risks across cloud environments. Founded in 1999 and headquartered in Petah Tikva, Israel, CyberArk serves diverse industries including financial services, healthcare, and government agencies.
Arqit Quantum Inc. Overview
Arqit Quantum Inc. provides cybersecurity services utilizing satellite and terrestrial platforms, with a focus on quantum encryption technology. Its flagship product, QuantumCloud, enables secure key generation for any device via a lightweight software agent. Based in London, UK, Arqit operates in the software infrastructure sector with a relatively small workforce and targets the evolving landscape of quantum-secure cybersecurity solutions.
Key similarities and differences
Both companies operate in the software infrastructure industry specializing in cybersecurity, yet their approaches differ significantly. CyberArk emphasizes privileged access and identity management with a broad global reach and diversified client base. In contrast, Arqit focuses on quantum encryption technology delivered through satellite infrastructure, targeting cutting-edge encryption methods. CyberArk’s larger scale and established market presence contrast with Arqit’s niche, innovative technology and smaller scale.
Income Statement Comparison
This table provides a side-by-side comparison of the most recent full-year income statement metrics for CyberArk Software Ltd. and Arqit Quantum Inc., illustrating their financial performance in 2024 and 2025 respectively.
| Metric | CyberArk Software Ltd. (2024) | Arqit Quantum Inc. (2025) |
|---|---|---|
| Market Cap | 22.9B | 416M |
| Revenue | 1.00B | 530K |
| EBITDA | 28.7M | -36.8M |
| EBIT | -13.3M | -37.6M |
| Net Income | -93.5M | -35.3M |
| EPS | -2.12 | -2.56 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
CyberArk Software Ltd.
CyberArk’s revenue grew steadily from $464M in 2020 to $1.0B in 2024, a 115% increase over five years. Despite strong gross margins near 79%, the company posted net losses throughout, with the net margin declining to -9.34% in 2024. The latest year showed a 33% revenue increase and improved EBIT growth of 78%, yet net income and EPS deteriorated.
Arqit Quantum Inc.
Arqit experienced rapid revenue growth from $48K in 2021 to $530K in 2025, a 1006% rise overall. However, its gross margin remained negative at -43.4% in 2025, reflecting high costs relative to sales. The company reported large net losses, though net margin and EPS showed favorable improvement in the last year, supported by a 81% revenue growth and a 64% net margin gain.
Which one has the stronger fundamentals?
CyberArk boasts a sizable revenue base with stable gross margins and consistent growth, though profitability remains elusive with recurring losses. Arqit’s fundamentals reflect early-stage volatility with negative margins but rapid top-line expansion and recent margin improvements. CyberArk’s scale contrasts with Arqit’s high growth but higher risk profile, resulting in a balanced fundamental assessment.
Financial Ratios Comparison
This table presents the most recent financial ratios for CyberArk Software Ltd. and Arqit Quantum Inc. to facilitate a direct comparison of their key financial metrics as of their latest fiscal years.
| Ratios | CyberArk Software Ltd. (2024) | Arqit Quantum Inc. (2025) |
|---|---|---|
| ROE | -3.94% | -129.77% |
| ROIC | -2.85% | -127.45% |
| P/E | -157.5 | -15.12 |
| P/B | 6.21 | 19.62 |
| Current Ratio | 1.48 | 2.69 |
| Quick Ratio | 1.48 | 2.69 |
| D/E (Debt-to-Equity) | 0.012 | 0.026 |
| Debt-to-Assets | 0.009 | 0.017 |
| Interest Coverage | -17.90 | -802.90 |
| Asset Turnover | 0.30 | 0.012 |
| Fixed Asset Turnover | 51.11 | 0.74 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
CyberArk Software Ltd.
CyberArk’s 2024 ratios reveal a mixed financial profile with several unfavorable indicators such as negative net margin (-9.34%) and return on equity (-3.94%). The company maintains favorable leverage ratios, including a low debt-to-equity of 0.01 and a quick ratio of 1.48, suggesting solid liquidity. It does not pay dividends, reflecting a reinvestment strategy likely supporting R&D and growth initiatives.
Arqit Quantum Inc.
Arqit’s ratios in 2025 show significant challenges, including extremely negative net margin (-6668.49%) and return on equity (-129.77%), indicating sustained losses. The firm benefits from strong liquidity metrics with a current ratio of 2.69 and low leverage, but operational efficiency appears weak with poor asset turnover. Arqit pays no dividend, consistent with its high-growth phase and focus on investments over distributions.
Which one has the best ratios?
CyberArk presents a slightly unfavorable overall ratio profile with important profitability weaknesses but robust liquidity and low leverage. In contrast, Arqit’s ratios are predominantly unfavorable, marked by severe profitability deficits despite favorable liquidity. Based on the evaluations, CyberArk holds relatively stronger financial ratios compared to Arqit, whose results indicate higher operational and financial risk.
Strategic Positioning
This section compares the strategic positioning of CyberArk Software Ltd. and Arqit Quantum Inc., focusing on Market position, Key segments, and Exposure to technological disruption:
CyberArk Software Ltd.
- Established market player with $22.9B market cap facing moderate competitive pressure in software infrastructure.
- Diverse revenue streams from SaaS, maintenance, professional services, and licenses across various industries.
- Operates in traditional software security with evolving cloud and identity solutions; less exposure to quantum disruption.
Arqit Quantum Inc.
- Smaller player with $416M market cap and higher beta, indicating greater competitive volatility.
- Focused on quantum encryption services via satellite and terrestrial platforms in the UK.
- Positioned in quantum encryption technology, directly exposed to emerging technological disruption.
CyberArk vs Arqit Positioning
CyberArk pursues a diversified approach with multiple revenue streams and broad industry coverage, offering stability but facing mature market pressures. Arqit concentrates on a niche quantum encryption segment, which may offer growth but carries higher risk and uncertainty.
Which has the best competitive advantage?
Both companies currently shed value with ROIC below WACC. CyberArk’s declining profitability contrasts with Arqit’s improving ROIC trend, resulting in CyberArk’s moat rating as Very Unfavorable and Arqit’s as Slightly Unfavorable.
Stock Comparison
The stock price movements of CyberArk Software Ltd. (CYBR) and Arqit Quantum Inc. (ARQQ) over the past 12 months reveal strong overall bullish trends with recent declines in both, highlighting contrasting price momentum and trading activity.
Trend Analysis
CyberArk Software Ltd. (CYBR) experienced a 77.27% price increase over the past year, indicating a bullish trend with decelerating momentum. The stock showed high volatility with a standard deviation of 82.45 and a peak price of 520.78 before recent declines.
Arqit Quantum Inc. (ARQQ) posted a 93.6% gain over the same period, also bullish but decelerating. It exhibited lower volatility at 11.75 standard deviation, reaching a high of 49.92. Recent performance showed a sharper drop than CYBR.
Both stocks delivered strong positive returns over the past year, with ARQQ outperforming CYBR in total price appreciation despite higher recent declines.
Target Prices
Analysts provide a clear consensus on target prices for CyberArk Software Ltd. and Arqit Quantum Inc., reflecting their growth expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CyberArk Software Ltd. | 520 | 440 | 479.22 |
| Arqit Quantum Inc. | 60 | 60 | 60 |
CyberArk’s target consensus at 479.22 USD suggests moderate upside from the current 453.65 USD price, while Arqit’s fixed target of 60 USD indicates significant potential above its current 26.6 USD market price.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for CyberArk Software Ltd. and Arqit Quantum Inc.:
Rating Comparison
CyberArk Software Ltd. Rating
- Rating: C- indicating a very favorable overall rating.
- Discounted Cash Flow Score: Moderate score of 3.
- ROE Score: Very unfavorable score of 1, showing low efficiency.
- ROA Score: Very unfavorable score of 1, indicating poor asset use.
- Debt To Equity Score: Moderate score of 2, reflecting balanced risk.
- Overall Score: Very unfavorable score of 1.
Arqit Quantum Inc. Rating
- Rating: C indicating a very favorable overall rating.
- Discounted Cash Flow Score: Moderate score of 2.
- ROE Score: Very unfavorable score of 1, showing low efficiency.
- ROA Score: Very unfavorable score of 1, indicating poor asset use.
- Debt To Equity Score: Favorable score of 4, indicating low risk.
- Overall Score: Moderate score of 2.
Which one is the best rated?
Based strictly on provided data, Arqit Quantum Inc. holds a better overall score and a more favorable debt to equity rating than CyberArk Software Ltd., despite both having very unfavorable ROE and ROA scores.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for CyberArk Software Ltd. and Arqit Quantum Inc.:
CYBR Scores
- Altman Z-Score: 6.52, indicating a safe zone status
- Piotroski Score: 3, classified as very weak
ARQQ Scores
- Altman Z-Score: -0.22, indicating a distress zone status
- Piotroski Score: 2, classified as very weak
Which company has the best scores?
CyberArk shows a significantly higher Altman Z-Score, placing it in the safe zone, whereas Arqit is in financial distress. Both have very weak Piotroski scores, though CyberArk’s is slightly higher. Overall, CyberArk has the stronger financial stability indicators.
Grades Comparison
The grades from recognized financial institutions for both CyberArk Software Ltd. and Arqit Quantum Inc. are as follows:
CyberArk Software Ltd. Grades
The table below lists recent grades from reputable grading firms for CyberArk Software Ltd.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | Maintain | Outperform | 2024-10-22 |
| Keybanc | Maintain | Overweight | 2024-10-18 |
| Mizuho | Maintain | Outperform | 2024-10-17 |
| BTIG | Maintain | Buy | 2024-10-09 |
| Barclays | Maintain | Overweight | 2024-10-07 |
| Wedbush | Maintain | Outperform | 2024-10-01 |
| Jefferies | Maintain | Buy | 2024-09-24 |
| DA Davidson | Maintain | Buy | 2024-08-09 |
| Rosenblatt | Maintain | Buy | 2024-08-09 |
| Susquehanna | Maintain | Positive | 2024-08-09 |
Overall, CyberArk maintains a strong buy/overweight consensus with consistent positive ratings from multiple reputable firms.
Arqit Quantum Inc. Grades
The table below shows recent grades exclusively from HC Wainwright & Co. for Arqit Quantum Inc.:
| 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 |
The grades for Arqit Quantum come solely from a single firm with a stable buy rating repeated over multiple dates.
Which company has the best grades?
CyberArk Software Ltd. has received a broader range of strong buy and outperform grades from multiple reputable grading companies, indicating greater analyst support. Arqit Quantum Inc.’s grades, while positive, come exclusively from one source, which may imply less diversified analyst confidence for investors to consider.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for CyberArk Software Ltd. (CYBR) and Arqit Quantum Inc. (ARQQ) based on the latest financial and operational data.
| Criterion | CyberArk Software Ltd. (CYBR) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Diversification | Moderate product diversification: strong SaaS and subscription revenue streams alongside maintenance and professional services | Limited product diversification; focused on quantum encryption technology |
| Profitability | Negative net margin (-9.34%) and ROIC (-2.85%), value destroying with declining profitability | Highly negative margins (-6668%) and ROIC (-127%), but improving ROIC trend |
| Innovation | Established cybersecurity solutions with steady SaaS growth | Emerging quantum tech innovator with increasing ROIC, but still unprofitable |
| Global presence | Strong global footprint with large SaaS and subscription client base | Smaller scale, early-stage global reach with niche quantum security focus |
| Market Share | Significant share in privileged access management and cybersecurity SaaS | Niche market player in quantum encryption, currently limited market penetration |
Key takeaways: CyberArk demonstrates steady revenue growth in SaaS and subscription segments but faces profitability challenges and declining ROIC, signaling value erosion. Arqit is an emerging innovator with a promising ROIC trend but remains deeply unprofitable and narrowly focused, implying higher risk and longer-term uncertainty. Investors must weigh CyberArk’s established presence against Arqit’s growth potential and volatility.
Risk Analysis
Below is a comparative table outlining key risk factors for CyberArk Software Ltd. (CYBR) and Arqit Quantum Inc. (ARQQ) based on the most recent data from 2025-2026.
| Metric | CyberArk Software Ltd. (CYBR) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Market Risk | Moderate (Beta 0.915) | High (Beta 2.407) |
| Debt level | Low (Debt-to-Equity 0.01) | Low (Debt-to-Equity 0.03) |
| Regulatory Risk | Moderate (Tech sector, global) | Moderate (UK-based, quantum tech) |
| Operational Risk | Moderate (3,793 employees, mature operations) | High (82 employees, early-stage) |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate (Israeli base, global sales) | Moderate (UK base, global reach) |
CyberArk faces moderate market and operational risks but maintains strong financial stability with very low debt and a solid Altman Z-Score in the safe zone. Arqit, conversely, exhibits high market volatility and operational risks, compounded by a distress-level Altman Z-Score, indicating higher bankruptcy risk. Investors should weigh CyberArk’s stability against Arqit’s growth potential and higher risk profile.
Which Stock to Choose?
CyberArk Software Ltd. (CYBR) shows a 33.1% revenue growth in 2024 with a mixed financial profile: favorable gross margin and fixed asset turnover but negative profitability ratios and declining ROIC, reflecting value destruction. Its rating is very favorable, despite some ratio weaknesses.
Arqit Quantum Inc. (ARQQ) reports an 80.9% revenue increase in 2025, yet suffers from severe profitability issues with negative margins and ROIC below WACC. The company shows improving ROIC trends but remains a value destroyer. Its rating is also very favorable but with more unfavorable ratios than CYBR.
Investors seeking growth might find ARQQ’s strong revenue growth and improving ROIC trend appealing despite its risks, whereas those preferring a company with a more established financial rating and moderate income stability may see CYBR as relatively more balanced. The choice could depend on one’s risk tolerance and investment strategy.
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 CyberArk Software Ltd. and Arqit Quantum Inc. to enhance your investment decisions:
