D-Wave Quantum (NASDAQ:QBTS – Get Free Report) and GitLab (NASDAQ:GTLB – Get Free Report) are both mid-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Profitability
This table compares D-Wave Quantum and GitLab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| D-Wave Quantum | -2,001.59% | -26.67% | -24.03% |
| GitLab | -4.99% | -1.28% | -0.77% |
Earnings and Valuation
This table compares D-Wave Quantum and GitLab”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 | $24.59 million | 174.95 | -$355.06 million | ($0.71) | -16.38 |
| GitLab | $1.06 billion | 8.61 | -$55.96 million | ($0.32) | -170.41 |
GitLab has higher revenue and earnings than D-Wave Quantum. GitLab 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.
Institutional & Insider Ownership
42.5% of D-Wave Quantum shares are held by institutional investors. Comparatively, 95.0% of GitLab shares are held by institutional investors. 1.3% of D-Wave Quantum shares are held by insiders. Comparatively, 10.6% of GitLab shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for D-Wave Quantum and GitLab, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| D-Wave Quantum | 1 | 2 | 13 | 0 | 2.75 |
| GitLab | 4 | 17 | 7 | 0 | 2.11 |
D-Wave Quantum currently has a consensus price target of $36.27, suggesting a potential upside of 211.84%. GitLab has a consensus price target of $51.75, suggesting a potential downside of 5.10%. Given D-Wave Quantum’s stronger consensus rating and higher probable upside, equities research analysts clearly believe D-Wave Quantum is more favorable than GitLab.
Volatility & Risk
D-Wave Quantum has a beta of 2.18, indicating that its stock price is 118% more volatile than the S&P 500. Comparatively, GitLab has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.
Summary
GitLab beats D-Wave Quantum on 8 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 GitLab
GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. The company helps organizations to plan, build, secure, and deploy software to drive business outcomes. It also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. GitLab Inc. was founded in 2011 and is headquartered in San Francisco, California.
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