Critical Contrast: Scienjoy (NASDAQ:SJ) versus D-Wave Quantum (NYSE:QBTS)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for D-Wave Quantum and Scienjoy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-Wave Quantum	0	0	6	0	3.00
Scienjoy	0	0	0	0	0.00

D-Wave Quantum presently has a consensus target price of $2.63, indicating a potential upside of 40.75%. Given D-Wave Quantum’s stronger consensus rating and higher probable upside, analysts clearly believe D-Wave Quantum is more favorable than Scienjoy.

Volatility & Risk

D-Wave Quantum has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Scienjoy has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares D-Wave Quantum and Scienjoy’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%
Scienjoy	-4.79%	-5.34%	-4.39%

Earnings & Valuation

This table compares D-Wave Quantum and Scienjoy”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	$8.76 million	42.88	-$82.71 million	($0.43)	-4.34
Scienjoy	$206.32 million	0.20	-$4.34 million	($0.25)	-4.20

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

Insider & Institutional Ownership

42.5% of D-Wave Quantum shares are owned by institutional investors. Comparatively, 0.3% of Scienjoy shares are owned by institutional investors. 7.2% of D-Wave Quantum shares are owned by insiders. Comparatively, 33.6% of Scienjoy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Scienjoy beats D-Wave Quantum 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 Scienjoy

Scienjoy Holding Corporation provides mobile live streaming platforms in the People's Republic of China. The company focuses on interactive show live streaming from broadcasters to users. Its platforms enable users to view and interact with broadcasters through online chat, virtual items, and playing games. The company operates live streaming platforms under the Showself Live Streaming, Lehai Live Streaming, Haixiu Live Streaming, BeeLive Live Streaming, and Hongle Live Streaming names. It also offers technical development and advisory services. The company was founded in 2011 and is based in Hangzhou City, the People's Republic of China.