Tuya (NYSE:TUYA) vs. Arqit Quantum (NASDAQ:ARQQ) Critical Comparison

Tuya (NYSE:TUYA) and Arqit Quantum (NASDAQ:ARQQ) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Tuya and Arqit Quantum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tuya	0	1	1	0	2.50
Arqit Quantum	1	0	1	0	2.00

Tuya presently has a consensus target price of $3.61, suggesting a potential upside of 64.46%. Arqit Quantum has a consensus target price of $60.00, suggesting a potential upside of 278.55%. Given Arqit Quantum’s higher probable upside, analysts plainly believe Arqit Quantum is more favorable than Tuya.

Profitability

This table compares Tuya and Arqit Quantum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tuya	15.14%	4.84%	4.35%
Arqit Quantum	N/A	N/A	N/A

Volatility & Risk

Tuya has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Arqit Quantum has a beta of 2.42, meaning that its stock price is 142% more volatile than the S&P 500.

Institutional & Insider Ownership

11.5% of Tuya shares are owned by institutional investors. Comparatively, 16.6% of Arqit Quantum shares are owned by institutional investors. 2.1% of Tuya shares are owned by company insiders. Comparatively, 54.6% of Arqit Quantum shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Tuya and Arqit Quantum”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tuya	$298.62 million	3.99	$5.00 million	$0.08	27.44
Arqit Quantum	$530,000.00	457.26	-$35.34 million	N/A	N/A

Tuya has higher revenue and earnings than Arqit Quantum.

Summary

Tuya beats Arqit Quantum on 6 of the 11 factors compared between the two stocks.

About Tuya

Tuya Inc. offers purpose-built Internet of Things (IoT) cloud development platform in the People's Republic of China and internationally. The company provides platform-as-a-service that enables business, original equipment manufacturers, brands, and developers to develop, launch, manage, and monetize software-enabled smart devices and services; and industry software-as-a-service, which enables businesses to deploy, connect, and manage various types of smart devices. It also offers cloud-based software value-added services that provides end users with smart features, such as cloud storage; and Cube Smart Private Cloud Solution which enables conglomerates to build their own autonomous and controllable IoT platforms; and could-based services to businesses, developers, and end users to develop and manage IoT experiences. In addition, the company provides smart solutions for IoT devices that integrates software capabilities; and enables developers to activate an IoT ecosystem of brands, OEMs, partners, and end users to engage and communicate through a range of smart devices, as well as sells finished smart devices. It offers its solutions to smart home, smart business, renewable energy, education, agriculture, outdoors and sport, and entertainment industries. The company was incorporated in 2014 and is based in Hangzhou, the People's Republic of China.

About Arqit Quantum

Arqit Quantum Inc. provides cybersecurity services through satellite and terrestrial platforms in the United Kingdom. It offers QuantumCloud, a Platform as a Service that creates unbreakable software encryption keys. The company also provides maintenance and support, and professional services. Arqit Quantum Inc. is based in London, the United Kingdom.