Comparing trivago (NASDAQ:TRVG) & D-Wave Quantum (NYSE:QBTS)

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

Insider and Institutional Ownership

42.5% of D-Wave Quantum shares are held by institutional investors. Comparatively, 4.5% of trivago shares are held by institutional investors. 7.2% of D-Wave Quantum shares are held by company insiders. Comparatively, 6.5% of trivago shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for D-Wave Quantum and trivago, 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
trivago	0	3	1	0	2.25

D-Wave Quantum currently has a consensus price target of $6.38, suggesting a potential upside of 10.39%. trivago has a consensus price target of $2.55, suggesting a potential downside of 15.28%. Given D-Wave Quantum’s stronger consensus rating and higher possible upside, equities analysts plainly believe D-Wave Quantum is more favorable than trivago.

Earnings & Valuation

This table compares D-Wave Quantum and trivago”s gross 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	177.44	-$82.71 million	($0.42)	-13.75
trivago	$524.90 million	0.40	-$178.01 million	($0.07)	-42.99

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

Profitability

This table compares D-Wave Quantum and trivago’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%
trivago	-5.77%	-1.20%	-0.77%

Risk and Volatility

D-Wave Quantum has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, trivago has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Summary

D-Wave Quantum beats trivago on 9 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 trivago

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.