IonQ (NYSE:IONQ) and SofTech (OTCMKTS:SOFT) Head to Head Contrast

IonQ (NYSE:IONQ) and SofTech (OTCMKTS:SOFT) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Insider and Institutional Ownership

41.4% of IonQ shares are owned by institutional investors. 11.6% of IonQ shares are owned by company insiders. Comparatively, 28.6% of SofTech shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for IonQ and SofTech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IonQ	0	2	4	0	2.67
SofTech	0	0	0	0	0.00

IonQ currently has a consensus target price of $38.33, suggesting a potential upside of 9.32%. Given IonQ’s stronger consensus rating and higher probable upside, research analysts clearly believe IonQ is more favorable than SofTech.

Volatility and Risk

IonQ has a beta of 2.46, meaning that its share price is 146% more volatile than the S&P 500. Comparatively, SofTech has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500.

Earnings & Valuation

This table compares IonQ and SofTech”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IonQ	$43.06 million	181.47	-$157.77 million	($1.49)	-23.53
SofTech	N/A	N/A	N/A	N/A	N/A

SofTech has lower revenue, but higher earnings than IonQ.

Profitability

This table compares IonQ and SofTech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IonQ	-457.85%	-36.82%	-32.48%
SofTech	N/A	N/A	N/A

Summary

IonQ beats SofTech on 6 of the 10 factors compared between the two stocks.

About IonQ

IonQ, Inc. engages in the development of general-purpose quantum computing systems in the United States. It sells access to quantum computers of various qubit capacities. The company makes access to its quantum computers through cloud platforms, such as Amazon Web Services (AWS) Amazon Braket, Microsoft’s Azure Quantum, and Google’s Cloud Marketplace, as well as through its cloud service. It also provides contracts associated with the design, development, and construction of specialized quantum computing hardware systems; maintenance and support services; and consulting services related to co-developing algorithms on quantum computing systems. The company was founded in 2015 and is headquartered in College Park, Maryland.

About SofTech

SofTech, Inc. develops, markets, distributes, and supports computer aided design (CAD), and product data management and collaboration computer solutions for the product lifecycle management (PLM) industry primarily in North America, Europe, and Asia. The company offers ProductCenter, a collaborative PLM solution, which manages the engineering data and electronic files of discrete parts designed in various used third party proprietary design technologies; delivers a combination of document management, design integration, configuration control, change management, bill of materials management, and integration capability with other enterprise-wide systems; enables secure management of product information; and allows engineers and the design chain to manage, share, modify, and track product data and documents in the product development lifecycle. Its ProductCenter technology also allows employees, customers, suppliers, and other team members to securely exchange product information while maintaining a centralized database of critical product data; and enables integration with other business applications, such as enterprise resource planning, supply chain management, and customer relationship management for data exchange across the product lifecycle. In addition, the company offers Connector platform, a technology that allows for a direct interface between Aras Corporation’s Innovator solution and CAD products. SofTech, Inc. markets and distributes its products and services primarily through a direct sales force and its service organization, as well as through resellers. The company was founded in 1969 and is headquartered in Lowell, Massachusetts.