Critical Comparison: D-Wave Quantum (NYSE:QBTS) and Agent Information Software (OTCMKTS:AIFS)

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

Analyst Recommendations

This is a summary of current ratings and price targets for D-Wave Quantum and Agent Information Software, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-Wave Quantum	0	0	6	0	3.00
Agent Information Software	0	0	0	0	0.00

D-Wave Quantum presently has a consensus target price of $6.38, indicating a potential upside of 1.32%. Given D-Wave Quantum’s stronger consensus rating and higher probable upside, equities research analysts plainly believe D-Wave Quantum is more favorable than Agent Information Software.

Valuation and Earnings

This table compares D-Wave Quantum and Agent Information Software”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	193.32	-$82.71 million	($0.42)	-14.98
Agent Information Software	$5.41 million	1.03	$200,000.00	$0.04	30.01

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

Insider and Institutional Ownership

42.5% of D-Wave Quantum shares are owned by institutional investors. Comparatively, 0.8% of Agent Information Software shares are owned by institutional investors. 7.2% of D-Wave Quantum shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

D-Wave Quantum has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Agent Information Software has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
D-Wave Quantum	-783.28%	N/A	-134.62%
Agent Information Software	3.62%	N/A	N/A

Summary

D-Wave Quantum beats Agent Information Software on 8 of the 13 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 Agent Information Software

Agent Information Software, Inc., together with its subsidiaries, provides software products and services used to create, manage, publish, and access information content via Internet or Web. It offers its software products and services to customers in the library community in the United States and Canada. The company was founded in 1950 and is headquartered in Rancho Cucamonga, California.