D-Wave Quantum (NYSE:QBTS) and Phunware (NASDAQ:PHUN) Head-To-Head Analysis

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

Insider & Institutional Ownership

42.5% of D-Wave Quantum shares are owned by institutional investors. Comparatively, 7.6% of Phunware shares are owned by institutional investors. 7.2% of D-Wave Quantum shares are owned by insiders. Comparatively, 1.2% of Phunware shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares D-Wave Quantum and Phunware’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D-Wave Quantum	$8.76 million	22.29	-$82.71 million	($0.53)	-2.15
Phunware	$4.83 million	9.40	-$52.78 million	N/A	N/A

Phunware has lower revenue, but higher earnings than D-Wave Quantum.

Volatility and Risk

D-Wave Quantum has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Phunware has a beta of 2.42, indicating that its stock price is 142% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for D-Wave Quantum and Phunware, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-Wave Quantum	0	0	5	0	3.00
Phunware	0	0	3	0	3.00

D-Wave Quantum presently has a consensus price target of $2.80, suggesting a potential upside of 145.61%. Phunware has a consensus price target of $19.00, suggesting a potential upside of 246.08%. Given Phunware’s higher possible upside, analysts clearly believe Phunware is more favorable than D-Wave Quantum.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
D-Wave Quantum	-778.56%	N/A	-131.66%
Phunware	-257.36%	-403.47%	-111.93%

Summary

D-Wave Quantum beats Phunware on 6 of the 11 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 Phunware

Phunware, Inc., together with its subsidiaries, provides integrated software platform that equips companies with the products, solutions, and services to engage, manage, and monetize their mobile application portfolios in the United States and internationally. The company's products and services include mobile software and application transaction solutions comprise integration of software development kit (SDK) licenses, which consists of analytics that offers data related to application use and engagement; content management that allows application administrators to create and manage app content in a cloud-based portal; alerts, notifications, and messaging, which enables brands to send messages; marketing automation that enables location-triggered messages and workflow; advertising; and location-based services, such as mapping, navigation, wayfinding, workflow, asset management, and policy enforcement. It is also involved in the integration of its SDK licenses into existing applications maintained by its customers, as well as custom application development and support services; and provision of cloud-based vertical solutions for healthcare, retail, sports, aviation, real estate, hospitality, education, and other applications, as well as application transactions, including re-occurring and one-time transactional media purchases for application discovery, user acquisition and audience building, audience engagement, and audience monetization. Phunware, Inc. was founded in 2009 and is headquartered in Austin, Texas.