In the rapidly evolving technology landscape, Quantum Computing, Inc. (QUBT) and Arqit Quantum Inc. (ARQQ) stand at the forefront of quantum innovation. While both companies operate within the technology sector, their focus diverges; QUBT specializes in quantum software tools, whereas ARQQ emphasizes cybersecurity solutions leveraging quantum technology. This comparison highlights their market overlap and differing innovation strategies, offering investors insight into which company may present a more compelling opportunity. Join me as we explore these two intriguing players in the quantum arena to determine the more promising investment.
Table of contents
Company Overview
Quantum Computing, Inc. Overview
Quantum Computing, Inc. (QUBT) is a technology firm specializing in developing software tools and applications for quantum computers. Based in Leesburg, Virginia, it aims to bridge the gap between classical and quantum computing by offering its flagship product, Qatalyst. This application accelerator enables developers to build quantum-ready applications that can run on both conventional and quantum computers. The company primarily serves commercial and government sectors, thus positioning itself as a key player in the emerging quantum computing landscape. With a market cap of $1.8B and a workforce of 41 employees, QUBT is committed to advancing quantum technology since its inception in 2018.
Arqit Quantum Inc. Overview
Arqit Quantum Inc. (ARQQ) is a UK-based cybersecurity company that leverages quantum technology to enhance data security. The firm provides its innovative QuantumCloud service, enabling devices to generate encryption keys securely through a lightweight software agent. This unique offering positions Arqit as a pioneer in the intersection of cybersecurity and quantum technology. Established in 2021 and currently employing 82 people, Arqit operates with a market cap of approximately $451M, focusing on delivering robust encryption solutions through both satellite and terrestrial platforms.
Key similarities and differences
Both Quantum Computing, Inc. and Arqit Quantum Inc. operate within the technology sector, yet they focus on different aspects of quantum technology. QUBT concentrates on software development for quantum computing applications, while ARQQ specializes in quantum-based cybersecurity solutions. Their distinct offerings highlight the diverse potential of quantum innovations, catering to varied market needs.
Income Statement Comparison
In the following table, I present a side-by-side comparison of the most recent income statements for Quantum Computing, Inc. (QUBT) and Arqit Quantum Inc. (ARQQ) to help assess their financial performance.
| Metric | [Company A: QUBT] | [Company B: ARQQ] |
|---|---|---|
| Market Cap | 1.80B | 0.45B |
| Revenue | 373K | 293K |
| EBITDA | -62.25M | -20.19M |
| EBIT | -66.05M | -23.75M |
| Net Income | -68.54M | -54.58M |
| EPS | -0.73 | -10.79 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, both companies exhibited declining revenues, with QUBT generating $373K and ARQQ at $293K. QUBT’s net income deterioration to -$68.54M indicates a worsening financial situation compared to ARQQ’s -$54.58M, suggesting that while both companies are struggling, QUBT has faced a more significant impact. Margins remain under pressure for both, evidenced by negative EBITDA and EBIT figures. The trend of increasing operating costs without corresponding revenue growth raises concerns about sustainability and may warrant a cautious approach for potential investors.
Financial Ratios Comparison
In this section, I present a comparative analysis of key financial metrics for Quantum Computing, Inc. (QUBT) and Arqit Quantum Inc. (ARQQ). These metrics help us evaluate the performance and financial health of both companies.
| Metric | QUBT | ARQQ |
|---|---|---|
| ROE | -64% | -462% |
| ROIC | -17% | -166% |
| P/E | -22.67 | -0.53 |
| P/B | 14.48 | 2.44 |
| Current Ratio | 17.36 | 1.94 |
| Quick Ratio | 17.36 | 1.94 |
| D/E | 0.011 | 0.084 |
| Debt-to-Assets | 0.008 | 0.084 |
| Interest Coverage | -10.39 | -110.72 |
| Asset Turnover | 0.0024 | 0.011 |
| Fixed Asset Turnover | 0.038 | 0.272 |
| Payout Ratio | -0.003 | 0 |
| Dividend Yield | 0.0138 | 0 |
Interpretation of Financial Ratios
Both companies exhibit troubling financial metrics, characterized by negative returns on equity (ROE) and return on invested capital (ROIC). QUBT shows a significantly high current and quick ratio, indicating potential liquidity, but the high P/B ratio suggests overvaluation. On the other hand, ARQQ’s ratios reflect severe operational inefficiencies and a high debt-to-assets ratio, which raises concerns about its financial stability. Both companies face considerable risks, and investors should exercise caution.
Dividend and Shareholder Returns
Both Quantum Computing, Inc. (QUBT) and Arqit Quantum Inc. (ARQQ) do not pay dividends, largely due to their focus on reinvestment for growth in a high-development phase. QUBT’s financials show significant losses, indicating a need for cash retention, while ARQQ appears to prioritize R&D and market expansion. Notably, neither company has sustainable dividend payouts or share buyback programs. This lack of immediate returns suggests a strategy aligned with long-term shareholder value creation, albeit with heightened risk.
Strategic Positioning
In the competitive landscape of quantum technology, Quantum Computing, Inc. (QUBT) and Arqit Quantum Inc. (ARQQ) are carving out distinct niches. QUBT focuses on software tools for quantum applications, holding a significant market share in quantum processing integration. In contrast, ARQQ specializes in cybersecurity, leveraging quantum encryption for enhanced security. Both companies face competitive pressure from traditional tech firms and emerging startups, while rapid technological advancements in quantum computing continue to disrupt conventional methods, influencing their market dynamics.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Quantum Computing, Inc. (QUBT) and Arqit Quantum Inc. (ARQQ) over the past year, focusing on significant price changes and trading dynamics.
Trend Analysis
Quantum Computing, Inc. (QUBT) Over the past year, QUBT has experienced a remarkable price change of +1491.57%. This indicates a bullish trend, despite a recent decline of -34.44% observed from September 28, 2025, to December 14, 2025. The stock reached a notable high of 24.62 and a low of 0.5, reflecting significant volatility with a standard deviation of 7.05. The overall trend shows signs of deceleration, suggesting that while the long-term outlook is positive, recent performance may warrant caution.
Arqit Quantum Inc. (ARQQ) ARQQ has achieved a price increase of +152.17% over the past year, also indicating a bullish trend. However, in the recent period, the stock has seen a decrease of -18.71% from September 28, 2025, to December 14, 2025. The highest price recorded was 49.92, with a low of 4.19, and a standard deviation of 11.84 indicates notable volatility. Similar to QUBT, the overall trend for ARQQ is showing deceleration, which suggests that investors should be mindful of potential risks in the near term.
In summary, both QUBT and ARQQ exhibit strong long-term bullish trends but face recent declines that indicate a need for careful consideration in investment decisions.
Analyst Opinions
Recent analyst recommendations for Quantum Computing, Inc. (QUBT) and Arqit Quantum Inc. (ARQQ) indicate a cautious outlook. QUBT received a rating of C+ from analysts, highlighting concerns in return on equity and assets, while ARQQ holds a C rating, reflecting similar worries. Analysts suggest holding both stocks due to uncertain financial metrics and market conditions. Overall, the consensus leans towards a hold for both companies in 2025, emphasizing the need for careful evaluation before making investment decisions.
Stock Grades
In the current market environment, I have gathered the latest stock ratings for two companies in the quantum computing sector. Here’s a closer look at the grades:
Quantum Computing, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Lake Street | Maintain | Buy | 2025-11-17 |
| Ascendiant Capital | Maintain | Buy | 2025-10-03 |
| Ascendiant Capital | Maintain | Buy | 2025-06-06 |
| Ascendiant Capital | Maintain | Buy | 2025-04-28 |
| Ascendiant Capital | Maintain | Buy | 2024-11-13 |
| Ascendiant Capital | Maintain | Buy | 2023-11-24 |
Arqit Quantum Inc. Grades
| 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 |
Overall, both Quantum Computing, Inc. and Arqit Quantum Inc. maintain strong buy ratings from reliable grading companies. This consistent assessment indicates a positive sentiment toward their future performance, suggesting they could be solid candidates for your investment portfolio.
Target Prices
The current consensus for target prices among analysts indicates a range of expectations for both Quantum Computing, Inc. and Arqit Quantum Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Quantum Computing, Inc. (QUBT) | 40 | 10 | 22 |
| Arqit Quantum Inc. (ARQQ) | 60 | 60 | 60 |
For Quantum Computing, Inc. (QUBT), the target consensus of 22 suggests a significant upside potential compared to the current price of 13.195. Conversely, Arqit Quantum Inc. (ARQQ) has a target consensus of 60, which aligns with its current trading price of 29.52, indicating that analysts foresee substantial growth potential.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Quantum Computing, Inc. (QUBT) and Arqit Quantum Inc. (ARQQ) based on the most recent data.
| Criterion | Quantum Computing, Inc. (QUBT) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Diversification | Limited; focused on quantum software | Moderate; cybersecurity services through satellites |
| Profitability | Negative margins; ongoing losses | Negative margins; recent growth in revenue |
| Innovation | High potential in quantum applications | Unique quantum encryption technology |
| Global presence | Primarily US-based operations | Operates in UK with expansion potential |
| Market Share | Niche player in quantum computing | Emerging player in cybersecurity sector |
| Debt level | Very low; minimal debt exposure | Moderate; some reliance on debt |
Key takeaways: Both companies exhibit unique strengths in innovation but struggle with profitability. Quantum Computing, Inc. has low debt, while Arqit Quantum shows a potential for growth in its market presence.
Risk Analysis
In the following table, I present a comparison of key risks for Quantum Computing, Inc. (QUBT) and Arqit Quantum Inc. (ARQQ) based on the latest available data.
| Metric | QUBT | ARQQ |
|---|---|---|
| Market Risk | High (Beta 3.802) | Moderate (Beta 2.383) |
| Regulatory Risk | Moderate | High |
| Operational Risk | High | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant operational risks, primarily due to their early-stage technologies and market volatility. Regulatory challenges also loom, especially for ARQQ, given its cybersecurity focus amid evolving compliance requirements.
Which one to choose?
When comparing Quantum Computing, Inc. (QUBT) and Arqit Quantum Inc. (ARQQ), both companies exhibit significant financial challenges. QUBT has a market cap of approximately 1.55B and shows an improvement in revenue trends, yet its profit margins remain deeply negative, with a net profit margin of -183.76%. In contrast, ARQQ, with a market cap of 28.84M, has shown a slight positive trend in its net income margin recently, although still negative at -186.28%.
Analysts grade QUBT slightly higher with a C+ rating versus ARQQ’s C, suggesting QUBT may have marginally better fundamentals. Both stocks have experienced bullish trends, but QUBT’s recent price changes indicate a decline of 34.44%, while ARQQ saw a decrease of 18.71%.
Investors focused on potential growth might prefer QUBT, while those seeking more stable options should consider ARQQ. However, both companies face significant risks related to competition and market dependence.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Quantum Computing, Inc. and Arqit Quantum Inc. to enhance your investment decisions:
