Arqit Quantum Inc. (ARQQ) vs Xunlei Limited (XNET)

Arqit Quantum Inc. and Xunlei Limited are both Software Infrastructure companies. Arqit Quantum Inc. and Xunlei Limited are of similar size ($295.8M and $276.7M). Xunlei Limited has negative trailing earnings, so its P/E is not meaningful; Arqit Quantum Inc. trades at 175×. Xunlei Limited has the higher net margin (−13.7% vs −67.7%) and the higher return on invested capital (0.56% vs 0.00%). Across the 16 metrics below, Xunlei Limited leads on 9 and Arqit Quantum Inc. on 7.

Valuation

Metric ARQQ XNET Software Infrastructure median
P/E 175.25 n/m 28.38
P/S 0.80 0.51 2.98
P/B 0.22 0.27 2.93
Price to free cash flow n/m 6.09 16.28
EV/EBITDA n/m 6.90 13.92
EV/Sales (2.18) 0.09 2.90
Earnings yield 0.57% (25.24%) 0.14%
Free cash flow yield (1,454.34%) 16.41% 1.24%

Profitability

Metric ARQQ XNET Software Infrastructure median
Gross margin 0.00% 47.09% 61.00%
Operating margin 0.00% 1.31% 0.00%
Net margin (67.73%) (13.68%) 0.00%
Free cash flow margin 0.00% 0.00% 1.67%
Return on equity 0.00% (7.06%) 0.60%
Return on assets 0.00% (5.83%) 0.00%
Return on invested capital 0.00% 0.56% 0.00%

Growth

Metric ARQQ XNET Software Infrastructure median
Revenue growth (TTM) — 73.77% 13.41%
EPS growth (last fiscal year) 49.41% 82,700.00% 27.10%
Revenue growth, 5-year CAGR (40.67%) 19.83% 15.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARQQ XNET Software Infrastructure median
Debt to equity 0.00 0.06 0.05
Current ratio 4.88 2.03 1.55
Net debt to EBITDA 0.98 (14.20) 0.08

Dividend

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

Size

Metric ARQQ XNET Software Infrastructure median
Market cap 276.70m 295.75m 752.37m

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