In the rapidly evolving world of technology, quantum computing stands at the forefront of innovation. Today, I will compare two key players in this space: Rigetti Computing, Inc. (RGTI) and Arqit Quantum Inc. (ARQQ). Both companies share a commitment to revolutionizing computing through quantum technology, yet they operate in distinct sectors—RGTI focuses on quantum hardware, while ARQQ specializes in cybersecurity solutions. Join me as we explore which of these companies presents the most compelling investment opportunity.
Table of contents
Company Overview
Rigetti Computing, Inc. Overview
Rigetti Computing, Inc. is at the forefront of the quantum computing revolution, developing advanced quantum processors and integrated quantum systems. Founded in 2013 and headquartered in Berkeley, California, Rigetti operates within the Computer Hardware sector. Its mission is to unlock the potential of quantum computing by providing powerful systems that can be accessed through its Quantum Cloud Services platform. With a market capitalization of approximately $9.3B, Rigetti’s innovative approach aims to integrate quantum capabilities into both public and private cloud infrastructures, catering to a wide range of industries.
Arqit Quantum Inc. Overview
Based in London, Arqit Quantum Inc. specializes in cybersecurity solutions leveraging quantum technology. Founded in 2021, the company offers a unique platform, QuantumCloud, which enables devices to generate encryption keys securely. With a market capitalization of around $451M, Arqit aims to enhance data security through its satellite and terrestrial services. Positioned within the Software – Infrastructure industry, the company’s mission is to make quantum encryption accessible to various organizations, ensuring robust protection against emerging cyber threats.
Key similarities and differences
Both Rigetti and Arqit are innovative players in the quantum technology sector, yet they focus on distinct aspects. Rigetti is primarily engaged in developing quantum computing hardware, while Arqit concentrates on cybersecurity solutions utilizing quantum technology. Despite their different applications, both companies aim to revolutionize their respective fields through cutting-edge advancements in quantum capabilities.
Income Statement Comparison
The following table displays a comparison of key income metrics for Rigetti Computing, Inc. and Arqit Quantum Inc. for their most recent fiscal years, providing insights into their financial performance.
| Metric | Rigetti Computing, Inc. (RGTI) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Market Cap | 9.31B | 451.42M |
| Revenue | 10.79M | 0.29M |
| EBITDA | -190.83M | -20.19M |
| EBIT | -197.73M | -23.75M |
| Net Income | -200.99M | -54.58M |
| EPS | -1.09 | -10.79 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
Both companies experienced significant revenue challenges, with Rigetti’s revenue declining from 12.01M in 2023 to 10.79M in 2024, while Arqit reported a drastic drop from 6.4M in 2023 to 0.29M in 2024. Notably, both firms have high negative EBITDA, indicating operational struggles. Rigetti’s margins worsened, reflecting its high operating costs, while Arqit’s performance shows a complete revenue decline, leading to substantial losses. Overall, the most recent year has been challenging for both companies, with Rigetti’s losses increasing and Arqit facing severe revenue challenges that require careful scrutiny for future investment decisions.
Financial Ratios Comparison
The following table presents a comparative analysis of key financial ratios for Rigetti Computing, Inc. (RGTI) and Arqit Quantum Inc. (ARQQ) based on the most recent data.
| Metric | RGTI | ARQQ |
|---|---|---|
| ROE | -158.77% | -461.85% |
| ROIC | -24.91% | -166.73% |
| P/E | -14.02 | -0.53 |
| P/B | 22.26 | 2.44 |
| Current Ratio | 17.42 | 1.94 |
| Quick Ratio | 17.42 | 1.94 |
| D/E | 0.07 | 0.08 |
| Debt-to-Assets | 3.09% | 3.72% |
| Interest Coverage | -21.05 | -110.72 |
| Asset Turnover | 0.038 | 0.011 |
| Fixed Asset Turnover | 0.205 | 0.272 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
The financial ratios indicate a challenging environment for both companies. RGTI shows a notably high current and quick ratio, suggesting strong liquidity. However, its negative ROE and ROIC reflect significant operational struggles. Meanwhile, ARQQ’s ratios, particularly its extreme negative ROE and interest coverage, highlight severe financial distress. These figures raise concerns about the sustainability of both companies moving forward, warranting caution for potential investors.
Dividend and Shareholder Returns
Rigetti Computing, Inc. (RGTI) does not pay dividends, reflecting its focus on reinvestment amidst ongoing financial challenges. Its net income remains negative, indicating a growth phase aimed at R&D rather than immediate shareholder returns. The company does engage in share buybacks, which can support share price but also poses risks of unsustainable practices if cash flows do not improve.
Similarly, Arqit Quantum Inc. (ARQQ) also refrains from dividend payments, prioritizing capital for growth despite substantial losses. While it does not currently return capital to shareholders, its strategy could align with long-term value creation if executed effectively. Both companies need to demonstrate improved financial stability to ensure their approaches are sustainable.
Strategic Positioning
In the rapidly evolving quantum computing market, Rigetti Computing, Inc. (RGTI) holds a significant market share due to its innovative quantum processors and Quantum Cloud Services platform. With a market cap of $9.31B, it faces competitive pressure from emerging technologies and other players like Arqit Quantum Inc. (ARQQ), which focuses on cybersecurity through quantum solutions. ARQQ, with a market cap of $451M, is positioned as a niche player but contends with high volatility, reflected in its beta of 2.383, indicating substantial risk in this disruptive landscape.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Rigetti Computing, Inc. (RGTI) and Arqit Quantum Inc. (ARQQ) over the past year, highlighting significant price changes and trading dynamics.
Trend Analysis
Rigetti Computing, Inc. (RGTI) Over the past year, RGTI has experienced a remarkable price increase of 2694.06%, indicating a bullish trend. However, the recent trend from September 28, 2025, to December 14, 2025, shows a decrease of -9.49%, reflecting a deceleration in momentum. The stock has fluctuated between a high of 46.38 and a low of 0.75, with a standard deviation of 11.06, suggesting notable volatility.
Arqit Quantum Inc. (ARQQ) For ARQQ, the overall price change over the last year stands at 152.17%, which also signifies a bullish trend. Yet, the recent trend from September 28, 2025, to December 14, 2025, has seen a decline of -18.71%, indicating deceleration in its upward trajectory. The stock’s price has ranged from a high of 49.92 to a low of 4.19, with a standard deviation of 11.84, reflecting moderate volatility as well.
In summary, both stocks present bullish long-term trends, but recent price movements suggest caution as they encounter short-term declines.
Analyst Opinions
Recent analyst recommendations for Rigetti Computing, Inc. (RGTI) and Arqit Quantum Inc. (ARQQ) have been cautious, with both receiving a “C” rating. Analysts highlight concerns over low scores in return on equity and return on assets for RGTI, while ARQQ faces similar challenges. Despite their discounted cash flow scores being slightly better, the overall consensus remains neutral. Given these ratings, I would categorize the consensus as a “hold” for both companies in 2025, indicating that investors should exercise caution before making any significant moves.
Stock Grades
In the current market landscape, stock grades provide valuable insights for investors to make informed decisions. Here’s a summary of the recent ratings for Rigetti Computing, Inc. and Arqit Quantum Inc.
Rigetti Computing, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B. Riley Securities | maintain | Neutral | 2025-11-12 |
| Benchmark | maintain | Buy | 2025-11-12 |
| B. Riley Securities | downgrade | Neutral | 2025-11-03 |
| Benchmark | maintain | Buy | 2025-10-07 |
| B. Riley Securities | maintain | Buy | 2025-09-22 |
| Benchmark | maintain | Buy | 2025-08-13 |
| Needham | maintain | Buy | 2025-08-04 |
| B. Riley Securities | maintain | Buy | 2025-07-23 |
| Benchmark | maintain | Buy | 2025-05-15 |
| Needham | maintain | Buy | 2025-05-14 |
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 Rigetti Computing and Arqit Quantum have maintained a consistent outlook, with Arqit receiving a strong “Buy” rating across multiple assessments. Rigetti shows some volatility with a recent downgrade to “Neutral” by B. Riley Securities, while Benchmark continues to uphold a “Buy” rating. As always, I recommend weighing these grades alongside your risk tolerance and investment strategy.
Target Prices
The current analyst consensus suggests promising potential for both Rigetti Computing, Inc. and Arqit Quantum Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Rigetti Computing, Inc. | 42 | 18 | 33.33 |
| Arqit Quantum Inc. | 60 | 60 | 60 |
For Rigetti Computing, the target consensus of 33.33 implies a potential upside from the current price of 28.23. In contrast, Arqit Quantum’s consensus of 60 indicates strong bullish sentiment, significantly above its current price of 29.52.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Rigetti Computing, Inc. (RGTI) and Arqit Quantum Inc. (ARQQ) based on recent financial data.
| Criterion | Rigetti Computing, Inc. (RGTI) | Arqit Quantum Inc. (ARQQ) |
|---|---|---|
| Diversification | Moderate | Low |
| Profitability | Negative margins | Negative margins |
| Innovation | High potential | Moderate potential |
| Global presence | Limited | Expanding |
| Market Share | Niche market | Emerging market |
| Debt level | Low (Debt/Equity: 0.07) | Low (Debt/Equity: 0.12) |
Key takeaways indicate that while both companies share negative profitability, Rigetti has a stronger innovative potential and lower debt levels compared to Arqit. However, both face challenges in terms of market presence and achieving profitability.
Risk Analysis
The following table outlines the key risks associated with Rigetti Computing, Inc. (RGTI) and Arqit Quantum Inc. (ARQQ).
| Metric | Rigetti Computing (RGTI) | Arqit Quantum (ARQQ) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | High | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | High |
Both companies face substantial operational and regulatory risks, particularly in the evolving technology and cybersecurity sectors. Rigetti’s high market risk is exacerbated by its volatile beta of 1.691, while Arqit struggles with significant operational losses, as evidenced by a net profit margin of -186.28% in the most recent period.
Which one to choose?
When comparing Rigetti Computing, Inc. (RGTI) and Arqit Quantum Inc. (ARQQ), both companies exhibit challenges in profitability and high operating expenses. RGTI has a market cap of 2.82B USD with a gross profit margin of 53% but a net profit margin of -18.63%. In contrast, ARQQ, valued at 28.84M USD, shows a troubling net profit margin of -186.28% and a significantly lower revenue stream.
In terms of analyst ratings, both companies are rated “C,” indicating average performance. RGTI’s stock trend appears bullish with a substantial price increase of 2694.06% historically, although recent trends show declines. ARQQ’s stock trend is also bullish but has seen a recent drop of 18.71%.
For investors looking for growth potential, RGTI may be a more favorable choice; however, those who prioritize stability and are risk-averse might prefer ARQQ for its lower market cap, albeit with greater operational risks due to its volatile financial performance. Both companies face risks, including heightened 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 Rigetti Computing, Inc. and Arqit Quantum Inc. to enhance your investment decisions:
