Innodata (NASDAQ:INOD – Get Free Report) and D-Wave Quantum (NYSE:QBTS – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.
Profitability
This table compares Innodata and D-Wave Quantum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Innodata | 2.33% | 9.08% | 3.80% |
| D-Wave Quantum | -661.66% | N/A | -111.58% |
Earnings and Valuation
This table compares Innodata and D-Wave Quantum’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innodata | $107.34 million | 4.92 | -$910,000.00 | $0.06 | 306.00 |
| D-Wave Quantum | $8.76 million | 21.93 | -$82.71 million | ($0.53) | -1.80 |
Insider and Institutional Ownership
30.8% of Innodata shares are held by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are held by institutional investors. 15.2% of Innodata shares are held by company insiders. Comparatively, 7.2% of D-Wave Quantum shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Innodata has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Innodata and D-Wave Quantum, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innodata | 0 | 0 | 2 | 0 | 3.00 |
| D-Wave Quantum | 0 | 0 | 7 | 0 | 3.00 |
Innodata presently has a consensus target price of $30.00, indicating a potential upside of 63.40%. D-Wave Quantum has a consensus target price of $2.54, indicating a potential upside of 165.94%. Given D-Wave Quantum’s higher probable upside, analysts plainly believe D-Wave Quantum is more favorable than Innodata.
Summary
Innodata beats D-Wave Quantum on 9 of the 13 factors compared between the two stocks.
About Innodata
Innodata Inc. operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services. This segment also provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management. The Synodex segment offers an industry platform that transforms medical records into useable digital data with its proprietary data models or client data models. The Agility segment provides an industry platform that offers marketing communications and public relations professionals to target and distribute content to journalists and social media influencers; and to monitor and analyze global news channels, such as print, web, radio, and TV, as well as social media channels. It serves banking, insurance, financial services, technology, digital retailing, and information/media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen, Inc. and changed its name to Innodata Inc. in June 2012. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.
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.
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