Intuit (NASDAQ:INTU) vs. D-Wave Quantum (NASDAQ:QBTS) Critical Analysis

Intuit (NASDAQ:INTU) and D-Wave Quantum (NASDAQ:QBTS) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Institutional and Insider Ownership

83.7% of Intuit shares are held by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are held by institutional investors. 2.5% of Intuit shares are held by company insiders. Comparatively, 1.3% of D-Wave Quantum shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Intuit and D-Wave Quantum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intuit	3	12	16	0	2.42
D-Wave Quantum	1	2	13	0	2.75

Intuit currently has a consensus target price of $431.55, indicating a potential upside of 32.72%. D-Wave Quantum has a consensus target price of $36.27, indicating a potential upside of 207.87%. Given D-Wave Quantum’s stronger consensus rating and higher probable upside, analysts plainly believe D-Wave Quantum is more favorable than Intuit.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intuit	21.29%	25.97%	14.11%
D-Wave Quantum	-2,001.59%	-26.67%	-24.03%

Valuation and Earnings

This table compares Intuit and D-Wave Quantum”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intuit	$21.45 billion	4.05	$4.57 billion	$16.50	19.71
D-Wave Quantum	$24.59 million	177.21	-$355.06 million	($0.71)	-16.59

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

Risk and Volatility

Intuit has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500.

Summary

Intuit beats D-Wave Quantum on 10 of the 14 factors compared between the two stocks.

About Intuit

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax. The Small Business & Self-Employed segment provides QuickBooks services, that includes financial and business management online services and desktop software, payroll solutions, time tracking, merchant payment processing solutions, and financing for small businesses; and Mailchimp services, such as e-commerce, marketing automation, and customer relationship management. This segment also offers QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; and QuickBooks Self-Employed solution; payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; and financial supplies and financing for small businesses, as well as electronic filing of federal and state income tax returns. The Consumer segment provides TurboTax income tax preparation products and services. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProTax segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, 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.