D-Wave Quantum (NYSE:QBTS – Get Free Report) and Playtika (NASDAQ:PLTK – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Institutional and Insider Ownership
42.5% of D-Wave Quantum shares are held by institutional investors. Comparatively, 11.9% of Playtika shares are held by institutional investors. 13.1% of D-Wave Quantum shares are held by insiders. Comparatively, 4.2% of Playtika shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility & Risk
D-Wave Quantum has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Playtika has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| D-Wave Quantum | 0 | 0 | 5 | 0 | 3.00 |
| Playtika | 1 | 5 | 4 | 0 | 2.30 |
D-Wave Quantum currently has a consensus target price of $2.80, suggesting a potential upside of 84.21%. Playtika has a consensus target price of $10.43, suggesting a potential upside of 46.42%. Given D-Wave Quantum’s stronger consensus rating and higher probable upside, equities research analysts clearly believe D-Wave Quantum is more favorable than Playtika.
Profitability
This table compares D-Wave Quantum and Playtika’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| D-Wave Quantum | -940.27% | N/A | -163.01% |
| Playtika | 9.15% | -81.85% | 9.16% |
Valuation & Earnings
This table compares D-Wave Quantum and Playtika’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| D-Wave Quantum | $8.76 million | 28.05 | -$82.71 million | ($0.62) | -2.45 |
| Playtika | $2.57 billion | 1.03 | $235.00 million | $0.64 | 11.13 |
Playtika has higher revenue and earnings than D-Wave Quantum. D-Wave Quantum is trading at a lower price-to-earnings ratio than Playtika, indicating that it is currently the more affordable of the two stocks.
Summary
D-Wave Quantum beats Playtika on 8 of the 14 factors compared between the two stocks.
About D-Wave Quantum
D-Wave Quantum Inc. develops and delivers quantum computing systems, software, and services worldwide. The company offers Advantage, a fifth-generation quantum computer; Ocean, a suite of open-source python tools; and Leap, a cloud-based service that provides real-time access to a live quantum computer, as well as access to Advantage, hybrid solvers, the Ocean software development kit, live code, demos, learning resources, and a vibrant developer community. It also provides D-Wave Launch, a quantum professional service that guides enterprises from problem discovery through production implementation. The company's quantum solutions are used in logistics, financial services, drug discovery, materials sciences, scheduling, fault detection, mobility, and supply chain management. It serves financial services, manufacturing/logistics, mobility, and life sciences/pharmaceuticals industries. D-Wave Quantum Inc. was founded in 1999 and is headquartered in Burnaby, Canada.
About Playtika
Playtika Holding Corp., together with its subsidiaries, develops mobile games in the United States, Europe, Middle East, Africa, Asia pacific, and internationally. The company owns a portfolio of casual and social casino-themed games. It distributes its games to the end customer through various web and mobile platforms and direct-to-consumer platforms. Playtika Holding Corp. was founded in 2010 and is headquartered in Herzliya Pituach, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding UK II Limited.
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