Arqit Quantum Inc. (ARQQ) vs Z Squared Inc. (ZSQR)

Arqit Quantum Inc. and Z Squared Inc. are both Software Infrastructure companies. Arqit Quantum Inc. is the larger, with a market value of $276.7M against $226.8M — 1.2× the size. Z Squared Inc. has negative trailing earnings, so its P/E is not meaningful; Arqit Quantum Inc. trades at 175×. Arqit Quantum Inc. has the higher net margin (−67.7% vs −874.1%) and the higher return on invested capital (0.00% vs −14.3%). Across the 15 metrics below, Arqit Quantum Inc. leads on 11 and Z Squared Inc. on 4.

Valuation

Metric ARQQ ZSQR Software Infrastructure median
P/E 175.25 n/m 28.38
P/S 0.80 67.56 2.98
P/B 0.22 1.53 2.93
Price to free cash flow n/m n/m 16.28
EV/EBITDA n/m n/m 13.92
EV/Sales (2.18) 62.45 2.90
Earnings yield 0.57% (65.97%) 0.14%
Free cash flow yield (1,454.34%) (4.35%) 1.24%

Profitability

Metric ARQQ ZSQR Software Infrastructure median
Gross margin 0.00% (17.77%) 61.00%
Operating margin 0.00% (890.63%) 0.00%
Net margin (67.73%) (874.08%) 0.00%
Free cash flow margin 0.00% (293.78%) 1.67%
Return on equity 0.00% (37.55%) 0.60%
Return on assets 0.00% (35.72%) 0.00%
Return on invested capital 0.00% (14.26%) 0.00%

Growth

Metric ARQQ ZSQR Software Infrastructure median
Revenue growth (TTM) — — 13.41%
EPS growth (last fiscal year) 49.41% 50.27% 27.10%
Revenue growth, 5-year CAGR (40.67%) — 15.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ARQQ ZSQR Software Infrastructure median
Debt to equity 0.00 0.00 0.05
Current ratio 4.88 7.66 1.55
Net debt to EBITDA 0.98 0.55 0.08

Dividend

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

Size

Metric ARQQ ZSQR Software Infrastructure median
Market cap 276.70m 226.84m 752.37m

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