Arqit Quantum Inc. (ARQQ) vs Telos Corporation (TLS)

Arqit Quantum Inc. and Telos Corporation are both Software Infrastructure companies. Telos Corporation is the larger, with a market value of $319.1M against $276.7M — 1.2× the size. Telos Corporation has negative trailing earnings, so its P/E is not meaningful; Arqit Quantum Inc. trades at 175×. Telos Corporation has the higher net margin (−8.13% vs −67.7%) and the lower return on invested capital (−25.4% vs 0.00%). Across the 17 metrics below, Arqit Quantum Inc. leads on 12 and Telos Corporation on 5.

Valuation

Metric ARQQ TLS Software Infrastructure median
P/E 175.25 n/m 28.38
P/S 0.80 1.56 2.98
P/B 0.22 3.23 2.93
Price to free cash flow n/m 11.67 16.28
EV/EBITDA n/m 29.83 13.92
EV/Sales (2.18) 1.41 2.90
Earnings yield 0.57% (5.21%) 0.14%
Free cash flow yield (1,454.34%) 8.57% 1.24%

Profitability

Metric ARQQ TLS Software Infrastructure median
Gross margin 0.00% 36.64% 61.00%
Operating margin 0.00% (9.92%) 0.00%
Net margin (67.73%) (8.13%) 0.00%
Free cash flow margin 0.00% 13.35% 1.67%
Return on equity 0.00% (14.86%) 0.60%
Return on assets 0.00% (10.33%) 0.00%
Return on invested capital 0.00% (25.38%) 0.00%

Growth

Metric ARQQ TLS Software Infrastructure median
Revenue growth (TTM) — 65.93% 13.41%
EPS growth (last fiscal year) 49.41% 31.51% 27.10%
Revenue growth, 5-year CAGR (40.67%) (1.74%) 15.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARQQ TLS Software Infrastructure median
Debt to equity 0.00 0.05 0.05
Current ratio 4.88 2.38 1.55
Net debt to EBITDA 0.98 3.54 0.08

Dividend

Metric ARQQ TLS Software Infrastructure median
Dividend yield — — 1.20%
Payout ratio — — 0.29

Size

Metric ARQQ TLS Software Infrastructure median
Market cap 276.70m 319.13m 752.37m

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