Contrasting D-Wave Quantum (NYSE:QBTS) & Upwork (NASDAQ:UPWK)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
D-Wave Quantum	-661.66%	N/A	-111.58%
Upwork	10.00%	20.75%	7.42%

Volatility and Risk

D-Wave Quantum has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Upwork has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Valuation & Earnings

This table compares D-Wave Quantum and Upwork”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	$10.12 million	16.65	-$82.71 million	($0.53)	-1.86
Upwork	$689.14 million	1.94	$46.89 million	$0.35	28.92

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

Analyst Ratings

This is a summary of recent ratings for D-Wave Quantum and Upwork, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-Wave Quantum	0	0	7	0	3.00
Upwork	0	2	8	0	2.80

D-Wave Quantum currently has a consensus price target of $2.54, suggesting a potential upside of 157.85%. Upwork has a consensus price target of $15.70, suggesting a potential upside of 55.14%. Given D-Wave Quantum’s stronger consensus rating and higher possible upside, equities analysts clearly believe D-Wave Quantum is more favorable than Upwork.

Insider and Institutional Ownership

42.5% of D-Wave Quantum shares are owned by institutional investors. Comparatively, 77.7% of Upwork shares are owned by institutional investors. 7.2% of D-Wave Quantum shares are owned by company insiders. Comparatively, 7.6% of Upwork shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Upwork beats D-Wave Quantum on 11 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 Upwork

Upwork Inc., together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company’s work marketplace provides access to talent with various skills across a range of categories, including administrative support, sales and marketing, design and creative, and customer service, as well as web, mobile, and software development. Its work marketplace also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. The company’s work marketplace offers access to various functionalities for remote engagements with talent, including communication and collaboration, ability to receive talent invoices through their work marketplace, and payment protection. Its marketplace offerings include Upwork Payroll and Upwork Enterprise, as well as managed and escrow services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc. was incorporated in 2013 and is headquartered in San Francisco, California.