Financial Survey: Toast (NYSE:TOST) and D-Wave Quantum (NYSE:QBTS)

D-Wave Quantum (NYSE:QBTS) and Toast (NYSE:TOST) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Earnings & Valuation

This table compares D-Wave Quantum and Toast”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D-Wave Quantum	$8.83 million	263.60	-$82.71 million	($0.69)	-12.53
Toast	$4.96 billion	3.58	-$246.00 million	($0.01)	-3,589.60

D-Wave Quantum has higher earnings, but lower revenue than Toast. Toast is trading at a lower price-to-earnings ratio than D-Wave Quantum, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

D-Wave Quantum has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Toast has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for D-Wave Quantum and Toast, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-Wave Quantum	0	0	6	0	3.00
Toast	1	12	9	0	2.36

D-Wave Quantum currently has a consensus target price of $8.42, suggesting a potential downside of 2.64%. Toast has a consensus target price of $40.48, suggesting a potential upside of 12.76%. Given Toast’s higher possible upside, analysts plainly believe Toast is more favorable than D-Wave Quantum.

Profitability

This table compares D-Wave Quantum and Toast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
D-Wave Quantum	-783.28%	N/A	-134.62%
Toast	0.40%	1.54%	0.93%

Insider and Institutional Ownership

42.5% of D-Wave Quantum shares are owned by institutional investors. Comparatively, 82.9% of Toast shares are owned by institutional investors. 7.2% of D-Wave Quantum shares are owned by company insiders. Comparatively, 13.3% of Toast 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.

Summary

Toast beats D-Wave Quantum on 10 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 Toast

Toast, Inc. operates a cloud-based digital technology platform for the restaurant industry in the United States, Ireland, and India. The company offers software products for restaurant operations and point of sale, such as Toast POS, Toast now, multi-location management, kitchen display system, Toast mobile order and pay, Toast catering and events, Toast invoicing, Toast tables, and restaurant retail; and hardware products, including Toast flex, Toast flex for guest, Toast go 2, Toast tap, kiosks, and Delphi by Toast. It provides toast online ordering and toast takeout, first-party delivery toast delivery services, and third-party delivery integrations and orders hub; and loyalty, email marketing, and toast gift cards. In addition, the company offers payroll and team management, Sling by Toast, Toast pay card and payout, and tips manager, as well as partner-enabled products comprising insurance and benefits; supply chain and accounting products, such as xtraCHEF by toast; and financial technology solutions consisting of payment processing, toast capital, and purchase plans. Further, it offers reporting and analytics, Toast shop, and Toast partner connect and application programming interfaces. The company was formerly known as Opti Systems, Inc. and changed its name to Toast, Inc. in May 2012. Toast, Inc. was incorporated in 2011 and is headquartered in Boston, Massachusetts.