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IonQ vs. D-Wave: Which Quantum Computing Stock Has Greater Upside?
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As quantum computing edges closer to commercial viability, two publicly traded companies stand at the forefront of this revolutionary technology: IonQ (IONQ - Free Report) and D-Wave Quantum (QBTS - Free Report) . Both companies are pioneering different approaches to quantum computing, with IonQ focused on gate-based quantum systems and D-Wave specializing in quantum annealing technology.
These companies represent rare pure-play investment opportunities in quantum computing, an industry projected to grow exponentially in the coming years. With recent technical breakthroughs, increasing commercial adoption, and expanding applications across industries from pharmaceuticals to automotive manufacturing, the timing is ripe for investors to evaluate which of these quantum pioneers offers greater upside potential.
Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for IonQ Stock
IonQ has established itself as a leader in gate-based quantum computing, with its trapped-ion technology showing promising results for general-purpose quantum applications. The company recently achieved a significant milestone when its quantum computing outperformed classical computing in designing life-saving medical devices in partnership with Ansys, demonstrating up to 12% faster processing performance.
Revenue growth remains a strong point for IONQ, with the Zacks Consensus Estimate for 2025 revenues pegged at $85 million, indicating year-over-year growth of 97.34%. The company has successfully commissioned its IonQ Forte Enterprise quantum computer globally through Amazon Braket and the IonQ Quantum Cloud, increasing accessibility for developers to build commercial applications.
IonQ's strategic focus on quantum networking is evident in its acquisition of Qubitekk and securing a controlling stake in ID Quantique, bolstering its patent portfolio to nearly 400 granted and pending quantum networking patents. This expansion has yielded significant government contracts, including a $54.5 million and a $21.1 million contract with the U.S. Air Force Research Laboratory.
The company's selection for the first stage of DARPA's Quantum Benchmarking Initiative further validates its position in the quantum computing landscape. However, IonQ still faces challenges with profitability, as the consensus mark for 2025 earnings suggests a loss of 79 cents per share, albeit narrower than the previous year's loss of $1.56.
Image Source: Zacks Investment Research
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Case for QBTS Stock
D-Wave Quantum distinguishes itself with its quantum annealing approach, which has enabled it to develop commercial quantum applications more rapidly than competitors. The company recently demonstrated quantum computational supremacy over classical computation on a useful, real-world problem in materials simulation, with its research published in the prestigious journal Science.
The company's growth trajectory appears impressive, with the Zacks Consensus Estimate for 2025 revenues currently pegged at $23.39 million, indicating a robust 163.85% increase from 2024. More encouragingly, the consensus mark for D-Wave's 2025 bottom line has narrowed to a loss of 25 cents per share from a previous loss of 38 cents, implying a 66.67% improvement from the year-ago period and indicating analyst optimism.
D-Wave has secured notable commercial deployments, including a hybrid-quantum application with Ford Otosan that streamlined manufacturing processes for Ford Transit vehicles, reducing scheduling time from 30 minutes to less than five. Additionally, a collaboration with Japan Tobacco demonstrated that D-Wave's quantum-hybrid workflow enhanced generative AI capabilities for drug discovery, producing novel, more "drug-like" molecular structures.
The company's financial position has strengthened significantly, with bookings growing 128% year over year to $23.9 million and fourth-quarter bookings up 502% to $18.3 million. D-Wave's cash position now exceeds $300 million, which management believes is sufficient to reach sustained profitability with less total investment than competitors.
Image Source: Zacks Investment Research
Stock Valuation and Price Performance
From a valuation standpoint, IonQ trades at a two-year forward 12-month price/sales ratio of 58.75x. In comparison, D-Wave trades at an even more premium valuation of 80.69X 2-year forward 12-month P/S ratio.
Both companies command substantial premiums due to their growth potential rather than current financial performance. However, D-Wave's accelerating revenue growth rate of 163.85% versus IonQ's 97.34% suggests potentially better value despite the higher multiple.
IONQ vs. QBTS P/S Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Regarding price performance, both stocks have experienced significant volatility characteristic of emerging technology investments, but D-Wave's recent demonstration of quantum supremacy on a practical problem could serve as a catalyst for future share price appreciation.
IonQ shares have lost 36.9% over the year-to-date period, underperforming both the broader Zacks Computer and Technology sector and the S&P 500's decline of 22.4% and 15.6%, respectively. However, D-Wave shares have outperformed all the above, declining only 14.3% in the same time frame.
QBTS Stock Outperforms IONQ & Sector Year-to-date
Image Source: Zacks Investment Research
Conclusion: D-Wave's Emerging Edge
D-Wave Quantum presents a more compelling investment case with its demonstrated quantum supremacy on real-world problems, more substantial projected revenue growth, and rapidly improving earnings estimates. The company's successful commercial deployments with Ford Otosan and Japan Tobacco showcase practical applications, delivering measurable business value. With a strengthened balance sheet of more than $300 million, a clear path to profitability, and strong analyst estimate revisions, D-Wave appears better positioned to capitalize on the quantum computing revolution's commercial phase.
While both companies trade at premium valuations, D-Wave's accelerating growth trajectory and proven quantum advantage give it the edge for investors seeking greater upside potential in the quantum computing space as compared to IonQ. QBTS and IONQ carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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IonQ vs. D-Wave: Which Quantum Computing Stock Has Greater Upside?
As quantum computing edges closer to commercial viability, two publicly traded companies stand at the forefront of this revolutionary technology: IonQ (IONQ - Free Report) and D-Wave Quantum (QBTS - Free Report) . Both companies are pioneering different approaches to quantum computing, with IonQ focused on gate-based quantum systems and D-Wave specializing in quantum annealing technology.
These companies represent rare pure-play investment opportunities in quantum computing, an industry projected to grow exponentially in the coming years. With recent technical breakthroughs, increasing commercial adoption, and expanding applications across industries from pharmaceuticals to automotive manufacturing, the timing is ripe for investors to evaluate which of these quantum pioneers offers greater upside potential.
Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for IonQ Stock
IonQ has established itself as a leader in gate-based quantum computing, with its trapped-ion technology showing promising results for general-purpose quantum applications. The company recently achieved a significant milestone when its quantum computing outperformed classical computing in designing life-saving medical devices in partnership with Ansys, demonstrating up to 12% faster processing performance.
Revenue growth remains a strong point for IONQ, with the Zacks Consensus Estimate for 2025 revenues pegged at $85 million, indicating year-over-year growth of 97.34%. The company has successfully commissioned its IonQ Forte Enterprise quantum computer globally through Amazon Braket and the IonQ Quantum Cloud, increasing accessibility for developers to build commercial applications.
IonQ's strategic focus on quantum networking is evident in its acquisition of Qubitekk and securing a controlling stake in ID Quantique, bolstering its patent portfolio to nearly 400 granted and pending quantum networking patents. This expansion has yielded significant government contracts, including a $54.5 million and a $21.1 million contract with the U.S. Air Force Research Laboratory.
The company's selection for the first stage of DARPA's Quantum Benchmarking Initiative further validates its position in the quantum computing landscape. However, IonQ still faces challenges with profitability, as the consensus mark for 2025 earnings suggests a loss of 79 cents per share, albeit narrower than the previous year's loss of $1.56.
Image Source: Zacks Investment Research
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Case for QBTS Stock
D-Wave Quantum distinguishes itself with its quantum annealing approach, which has enabled it to develop commercial quantum applications more rapidly than competitors. The company recently demonstrated quantum computational supremacy over classical computation on a useful, real-world problem in materials simulation, with its research published in the prestigious journal Science.
The company's growth trajectory appears impressive, with the Zacks Consensus Estimate for 2025 revenues currently pegged at $23.39 million, indicating a robust 163.85% increase from 2024. More encouragingly, the consensus mark for D-Wave's 2025 bottom line has narrowed to a loss of 25 cents per share from a previous loss of 38 cents, implying a 66.67% improvement from the year-ago period and indicating analyst optimism.
D-Wave has secured notable commercial deployments, including a hybrid-quantum application with Ford Otosan that streamlined manufacturing processes for Ford Transit vehicles, reducing scheduling time from 30 minutes to less than five. Additionally, a collaboration with Japan Tobacco demonstrated that D-Wave's quantum-hybrid workflow enhanced generative AI capabilities for drug discovery, producing novel, more "drug-like" molecular structures.
The company's financial position has strengthened significantly, with bookings growing 128% year over year to $23.9 million and fourth-quarter bookings up 502% to $18.3 million. D-Wave's cash position now exceeds $300 million, which management believes is sufficient to reach sustained profitability with less total investment than competitors.
Image Source: Zacks Investment Research
Stock Valuation and Price Performance
From a valuation standpoint, IonQ trades at a two-year forward 12-month price/sales ratio of 58.75x. In comparison, D-Wave trades at an even more premium valuation of 80.69X 2-year forward 12-month P/S ratio.
Both companies command substantial premiums due to their growth potential rather than current financial performance. However, D-Wave's accelerating revenue growth rate of 163.85% versus IonQ's 97.34% suggests potentially better value despite the higher multiple.
IONQ vs. QBTS P/S Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Regarding price performance, both stocks have experienced significant volatility characteristic of emerging technology investments, but D-Wave's recent demonstration of quantum supremacy on a practical problem could serve as a catalyst for future share price appreciation.
IonQ shares have lost 36.9% over the year-to-date period, underperforming both the broader Zacks Computer and Technology sector and the S&P 500's decline of 22.4% and 15.6%, respectively. However, D-Wave shares have outperformed all the above, declining only 14.3% in the same time frame.
QBTS Stock Outperforms IONQ & Sector Year-to-date
Image Source: Zacks Investment Research
Conclusion: D-Wave's Emerging Edge
D-Wave Quantum presents a more compelling investment case with its demonstrated quantum supremacy on real-world problems, more substantial projected revenue growth, and rapidly improving earnings estimates. The company's successful commercial deployments with Ford Otosan and Japan Tobacco showcase practical applications, delivering measurable business value. With a strengthened balance sheet of more than $300 million, a clear path to profitability, and strong analyst estimate revisions, D-Wave appears better positioned to capitalize on the quantum computing revolution's commercial phase.
While both companies trade at premium valuations, D-Wave's accelerating growth trajectory and proven quantum advantage give it the edge for investors seeking greater upside potential in the quantum computing space as compared to IonQ. QBTS and IONQ carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.