Xperi (NYSE:XPER) and D-Wave Quantum (NASDAQ:QBTS) Head to Head Analysis

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Xperi and D-Wave Quantum, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xperi	1	1	2	0	2.25
D-Wave Quantum	1	2	13	0	2.75

Xperi currently has a consensus target price of $11.00, suggesting a potential upside of 111.74%. D-Wave Quantum has a consensus target price of $36.27, suggesting a potential upside of 148.91%. Given D-Wave Quantum’s stronger consensus rating and higher probable upside, analysts plainly believe D-Wave Quantum is more favorable than Xperi.

Risk & Volatility

Xperi has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 2.18, meaning that its stock price is 118% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xperi	-7.12%	4.04%	2.72%
D-Wave Quantum	-2,001.59%	-26.67%	-24.03%

Institutional and Insider Ownership

94.3% of Xperi shares are owned by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are owned by institutional investors. 3.2% of Xperi shares are owned by insiders. Comparatively, 1.3% of D-Wave Quantum shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Xperi and D-Wave Quantum”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xperi	$448.11 million	0.57	-$56.34 million	($0.70)	-7.42
D-Wave Quantum	$24.59 million	219.18	-$355.06 million	($0.71)	-20.52

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

Summary

Xperi beats D-Wave Quantum on 9 of the 14 factors compared between the two stocks.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.

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.