In today’s rapidly evolving technology landscape, Teradata Corporation and Arqit Quantum Inc. stand out as innovators in the software infrastructure sector. Teradata focuses on multi-cloud data platforms for enterprise analytics, while Arqit pioneers quantum-based cybersecurity solutions. Despite differing scales and specialties, their overlapping commitment to cutting-edge technology makes them compelling investment candidates. Join me as we analyze which company offers the most promising opportunity for your portfolio.
Table of contents
Companies Overview
I will begin the comparison between Teradata Corporation and Arqit Quantum Inc. by providing an overview of these two companies and their main differences.
Teradata Corporation Overview
Teradata Corporation delivers a connected multi-cloud data platform designed for enterprise analytics. Its flagship product, Teradata Vantage, enables companies to integrate and leverage data across their organizations while simplifying ecosystems and supporting cloud migration. Established in 1979 and headquartered in San Diego, the company serves diverse sectors including financial services, healthcare, and telecommunications through a global direct sales force.
Arqit Quantum Inc. Overview
Arqit Quantum Inc. specializes in cybersecurity services utilizing satellite and terrestrial platforms. Its QuantumCloud product allows devices to generate encryption keys through a lightweight software agent, enhancing secure communications. Based in London and founded more recently, Arqit operates within the software infrastructure industry with a focused approach on quantum encryption technologies.
Key similarities and differences
Both Teradata and Arqit operate in the technology sector, specifically within software infrastructure, but their core business models differ significantly. Teradata focuses on data analytics and multi-cloud platforms serving a wide range of industries globally, while Arqit targets cybersecurity via innovative quantum encryption primarily from the UK. Teradata is well-established with a larger workforce and market cap, whereas Arqit is smaller and more specialized in emerging quantum technologies.
Income Statement Comparison
The table below presents a side-by-side comparison of key income statement metrics for Teradata Corporation and Arqit Quantum Inc. for their most recent fiscal years.
| Metric | Teradata Corporation (TDC) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Market Cap | 2.81B | 416M |
| Revenue | 1.75B (2024) | 530K (2025) |
| EBITDA | 293M (2024) | -36.8M (2025) |
| EBIT | 193M (2024) | -37.6M (2025) |
| Net Income | 114M (2024) | -35.3M (2025) |
| EPS | 1.18 (2024) | -2.56 (2025) |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
Teradata Corporation
Teradata’s revenue slightly declined by 4.53% in 2024, continuing a modest downtrend over 2020-2024. Despite this, net income more than doubled in 2024, reflecting a 92.6% rise in net margin. Gross margin remains strong at 60.5%, with EBIT margin at 11%, indicating improving profitability and operational efficiency in the latest fiscal year.
Arqit Quantum Inc.
Arqit showed significant revenue growth of 80.9% from 2024 to 2025 and an impressive overall increase exceeding 1000% since 2021. However, it continues to report substantial net losses, with a negative net margin of -6668%. While EPS improved by 76.3% year-on-year, EBIT margin remains deeply negative, reflecting ongoing heavy operational costs despite revenue gains.
Which one has the stronger fundamentals?
Teradata exhibits stable margins and growing net income, though with slight revenue contraction, signaling more consistent profitability. Arqit, while demonstrating rapid revenue and EPS growth, still faces large net losses and poor margins. Teradata’s favorable margin metrics contrast with Arqit’s volatile results, indicating stronger current fundamentals for Teradata based on income statement performance.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Teradata Corporation (TDC) and Arqit Quantum Inc. (ARQQ) based on their most recent available fiscal year data.
| Ratios | Teradata Corporation (TDC) 2024 | Arqit Quantum Inc. (ARQQ) 2025 |
|---|---|---|
| ROE | 85.7% | -129.8% |
| ROIC | 16.9% | -127.5% |
| P/E | 26.3 | -15.1 |
| P/B | 22.6 | 19.6 |
| Current Ratio | 0.81 | 2.69 |
| Quick Ratio | 0.79 | 2.69 |
| D/E (Debt-to-Equity) | 4.33 | 0.03 |
| Debt-to-Assets | 33.8% | 1.7% |
| Interest Coverage | 7.21 | -803 |
| Asset Turnover | 1.03 | 0.012 |
| Fixed Asset Turnover | 9.07 | 0.74 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of the Ratios
Teradata Corporation
Teradata displays a mixed ratio profile with strong return on equity (85.71%) and return on invested capital (16.89%), indicating efficient use of capital. However, liquidity ratios like current ratio (0.81) and quick ratio (0.79) are weak, suggesting potential short-term financial stress. The company does not pay dividends, likely focusing on growth or reinvestment, with no payout risks noted.
Arqit Quantum Inc.
Arqit shows mostly unfavorable ratios, including a deeply negative net margin (-6668.49%) and returns on equity and capital employed well below zero, signaling heavy losses. It has strong liquidity (current ratio 2.69) and minimal debt (debt/equity 0.03), but negative interest coverage is a concern. The company also pays no dividends, consistent with a high-growth, reinvestment phase and operational losses.
Which one has the best ratios?
Teradata’s ratios present a more balanced and favorable outlook, especially in profitability and capital efficiency, despite liquidity weaknesses. In contrast, Arqit’s ratios are largely unfavorable with significant losses and operational challenges. Overall, Teradata exhibits a more stable financial position compared to Arqit’s high-risk profile.
Strategic Positioning
This section compares the strategic positioning of Teradata Corporation and Arqit Quantum Inc. in terms of Market position, Key segments, and Exposure to technological disruption:
Teradata Corporation
- Established player with $2.8B market cap, moderate beta, low volatility, facing competitive pressure in software infrastructure.
- Focused on multi-cloud data platforms and enterprise analytics; key segments include consulting, recurring services, and subscription software licenses.
- Operates in a mature tech environment with incremental innovation; limited exposure to quantum disruption but invests in cloud ecosystem integration.
Arqit Quantum Inc.
- Smaller company with $416M market cap, high beta, higher volatility, competing in cybersecurity software infrastructure.
- Focused solely on cybersecurity services via satellite and terrestrial platforms, offering QuantumCloud encryption software.
- Positioned in emerging quantum encryption technology, facing potential disruption and opportunity in cybersecurity innovation.
Teradata Corporation vs Arqit Quantum Inc. Positioning
Teradata pursues a diversified strategy across multiple enterprise analytics segments with a broad geographic footprint, providing stability but exposure to mature markets. Arqit concentrates on pioneering quantum cybersecurity, offering growth potential but higher risk due to narrower focus and nascent technology.
Which has the best competitive advantage?
Teradata exhibits a very favorable moat with strong ROIC above WACC and growing profitability, indicating a durable competitive advantage. Arqit shows a slightly unfavorable moat with ROIC below WACC, suggesting value destruction despite improving profitability.
Stock Comparison
The stock price chart over the past year reveals contrasting dynamics: Teradata Corporation (TDC) faced a bearish trend with accelerating decline, while Arqit Quantum Inc. (ARQQ) showed a strong bullish run with decelerating momentum.
Trend Analysis
Teradata Corporation’s stock declined by 21.26% over the past 12 months, indicating a bearish trend with accelerating downward pressure and a price range between 19.73 and 38.67, supported by moderate volatility (5.63 std deviation).
Arqit Quantum Inc. posted a 93.6% gain over the same period, reflecting a bullish trend with decelerating growth and a wide price range from 4.19 to 49.92, accompanied by high volatility (11.75 std deviation).
Comparing both, ARQQ delivered the highest market performance with a strong positive return, while TDC experienced a significant negative trend over the past year.
Target Prices
The current analyst consensus presents a clear outlook for Teradata Corporation and Arqit Quantum Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Teradata Corporation | 35 | 27 | 31 |
| Arqit Quantum Inc. | 60 | 60 | 60 |
Analysts expect Teradata’s stock to appreciate moderately above its current price of $29.77, while Arqit Quantum’s target suggests a significant upside from $26.60.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Teradata Corporation and Arqit Quantum Inc.:
Rating Comparison
Teradata Corporation Rating
- Rating: B+, classified as very favorable by analysts.
- Discounted Cash Flow Score: 4, indicating favorable valuation.
- ROE Score: 5, showing very favorable profit generation efficiency.
- ROA Score: 4, demonstrating favorable asset utilization.
- Debt To Equity Score: 1, suggesting very unfavorable financial risk.
- Overall Score: 3, representing a moderate overall financial standing.
Arqit Quantum Inc. Rating
- Rating: C, classified as very favorable by analysts.
- Discounted Cash Flow Score: 2, indicating moderate valuation.
- ROE Score: 1, reflecting very unfavorable profit generation efficiency.
- ROA Score: 1, indicating very unfavorable asset utilization.
- Debt To Equity Score: 4, showing favorable financial risk.
- Overall Score: 2, representing a moderate overall financial standing.
Which one is the best rated?
Teradata holds a higher rating (B+) compared to Arqit’s C. Teradata also scores better in discounted cash flow, ROE, and ROA, despite a weaker debt-to-equity score. Overall, Teradata is better rated based strictly on the provided data.
Scores Comparison
The scores comparison between Teradata Corporation and Arqit Quantum Inc. is as follows:
TDC Scores
- Altman Z-Score: 0.81, indicating financial distress zone risk.
- Piotroski Score: 8, reflecting very strong financial health.
ARQQ Scores
- Altman Z-Score: -0.22, also in the financial distress zone.
- Piotroski Score: 2, reflecting very weak financial health.
Which company has the best scores?
Teradata has a higher Altman Z-Score and a much stronger Piotroski Score compared to Arqit. Based strictly on these scores, Teradata demonstrates stronger financial health and lower bankruptcy risk.
Grades Comparison
The grades from recognized financial institutions for Teradata Corporation and Arqit Quantum Inc. are as follows:
Teradata Corporation Grades
This table summarizes recent grades and actions from established grading companies for Teradata Corporation.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Underweight | 2026-01-12 |
| RBC Capital | Maintain | Sector Perform | 2026-01-05 |
| Morgan Stanley | Maintain | Overweight | 2025-12-17 |
| Citizens | Upgrade | Market Outperform | 2025-11-10 |
| Barclays | Maintain | Underweight | 2025-11-05 |
| TD Cowen | Maintain | Hold | 2025-11-05 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-05 |
| UBS | Maintain | Neutral | 2025-08-06 |
| Guggenheim | Maintain | Buy | 2025-05-07 |
| Barclays | Maintain | Underweight | 2025-04-21 |
Teradata’s grades exhibit a mixed pattern, ranging from Underweight to Overweight and Buy, indicating varied analyst perspectives on the stock’s outlook.
Arqit Quantum Inc. Grades
This table summarizes recent grades and actions from a recognized grading company 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 |
Arqit Quantum Inc. receives consistent Buy ratings from a single reputable grading company, with no changes over multiple reports, indicating stable positive sentiment.
Which company has the best grades?
Arqit Quantum Inc. shows a uniform Buy consensus from a reputable source, while Teradata Corporation displays a broad range of grades from Hold to Buy and Underweight. This contrast suggests Arqit may be perceived as having stronger growth potential, which could influence investor confidence differently.
Strengths and Weaknesses
Below is a summary table comparing key strengths and weaknesses of Teradata Corporation (TDC) and Arqit Quantum Inc. (ARQQ) based on the most recent financial and market data.
| Criterion | Teradata Corporation (TDC) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Diversification | Strong product and service mix with recurring revenue streams totaling over 2.7B USD in 2024 | Limited product breadth, focused on quantum encryption technology; less diversified |
| Profitability | Positive net margin (6.51%), strong ROE (85.7%), and ROIC (16.9%) showing value creation | Negative margins and returns (net margin -6668%, ROE -129.8%, ROIC -127.5%), value destruction |
| Innovation | Established in data analytics and subscription software; steady innovation in analytics services | High innovation in quantum encryption but early-stage with unproven profitability |
| Global presence | Significant international exposure with over 1B USD international revenue | Mainly focused on niche markets, less global scale |
| Market Share | Solid position in data analytics and consulting services sectors | Emerging player in quantum security, market share currently limited |
Teradata demonstrates a durable competitive advantage with strong profitability, diversified recurring revenues, and global reach. Arqit shows promise through innovation but faces profitability challenges and a narrower market focus. Investors should weigh Teradata’s stable value creation against Arqit’s growth potential tempered by financial risks.
Risk Analysis
Below is a comparative table of key risk factors for Teradata Corporation (TDC) and Arqit Quantum Inc. (ARQQ) based on the most recent data available in 2026:
| Metric | Teradata Corporation (TDC) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Market Risk | Moderate (Beta 0.57; stable range $18.43-$33.03) | High (Beta 2.41; volatile range $11-$62) |
| Debt Level | Elevated (Debt-to-Equity 4.33; Debt-to-Assets 33.8%) | Low (Debt-to-Equity 0.03; Debt-to-Assets 1.68%) |
| Regulatory Risk | Moderate (US technology sector compliance) | Moderate (UK cybersecurity regulations) |
| Operational Risk | Moderate (5700 employees, multi-cloud platform complexity) | High (Small workforce of 82, reliance on emerging quantum tech) |
| Environmental Risk | Low (Software infrastructure, limited direct impact) | Low (Software and satellite cybersecurity focus) |
| Geopolitical Risk | Moderate (Global operations including Americas, EMEA, Asia) | High (UK-based, sensitive to geopolitical shifts affecting quantum tech and satellite use) |
In synthesis, Arqit Quantum faces higher market volatility and operational risk due to its small size and emerging technology focus, alongside geopolitical sensitivity given its UK base and satellite reliance. Teradata shows more financial leverage risk and moderate market risk but benefits from a diversified global presence and established platform. Investors should weigh Arqit’s high growth potential against its financial distress signals and Teradata’s steadier but leveraged profile.
Which Stock to Choose?
Teradata Corporation (TDC) shows a mixed income evolution with recent revenue decline but improving EBIT and net margin growth. Its financial ratios reveal strong profitability and efficient capital use, though liquidity and leverage ratios are less favorable. The company holds a very favorable rating of B+.
Arqit Quantum Inc. (ARQQ) exhibits rapid revenue growth and improving margins but remains unprofitable overall. Its financial ratios are predominantly unfavorable except for low debt levels and strong liquidity. The rating stands at C with a slightly unfavorable global ratios opinion.
Investors focused on value and quality might find Teradata’s stable profitability and strong economic moat appealing, while those with a tolerance for risk and growth orientation could interpret Arqit’s accelerating revenue and improving income metrics as a potential opportunity despite weak profitability and financial stress signals.
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 Teradata Corporation and Arqit Quantum Inc. to enhance your investment decisions:
