Head to Head Analysis: Hewlett Packard Enterprise (NYSE:HPE) vs. D-Wave Quantum (NYSE:QBTS)

Hewlett Packard Enterprise (NYSE:HPE) and D-Wave Quantum (NYSE:QBTS) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Volatility and Risk

Hewlett Packard Enterprise has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500.

Insider & Institutional Ownership

80.8% of Hewlett Packard Enterprise shares are held by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are held by institutional investors. 0.4% of Hewlett Packard Enterprise shares are held by insiders. Comparatively, 1.3% of D-Wave Quantum shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hewlett Packard Enterprise	3.94%	11.91%	3.84%
D-Wave Quantum	-2,957.23%	-44.06%	-38.48%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Hewlett Packard Enterprise and D-Wave Quantum, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hewlett Packard Enterprise	0	6	11	1	2.72
D-Wave Quantum	1	1	14	1	2.88

Hewlett Packard Enterprise presently has a consensus target price of $67.31, indicating a potential upside of 40.20%. D-Wave Quantum has a consensus target price of $36.47, indicating a potential upside of 101.70%. Given D-Wave Quantum’s stronger consensus rating and higher possible upside, analysts plainly believe D-Wave Quantum is more favorable than Hewlett Packard Enterprise.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hewlett Packard Enterprise	$38.79 billion	1.64	$57.00 million	$1.07	44.87
D-Wave Quantum	$12.44 million	537.45	-$355.06 million	($1.13)	-16.00

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

Summary

Hewlett Packard Enterprise beats D-Wave Quantum on 8 of the 14 factors compared between the two stocks.

About Hewlett Packard Enterprise

Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It operates in six segments: Compute, HPC & AI, Storage, Intelligent Edge, Financial Services, and Corporate Investments and Other. The company offers general purpose servers for multi-workload computing and workload-optimized servers; HPE ProLiant rack and tower servers; HPE Synergy; HPE Alletra, HPE GreenLake, Zerto, HPE InfoSight, and HPE CloudPhysics storage products; HPE Cray EX, HPE Cray XD, and converged edge systems; and HPE Superdome Flex, HPE Nonstop, and HPE Integrity products. It also provides HPE Aruba products that includes hardware products, such as Wi-Fi access points, switches, and gateways; HPE Aruba Networking software and services comprising cloud-based management, network management and access control, analytics and assurance, software-defined wide-area networking, network security, analytics and assurance, and location services software; and professional and support services, as well as as-a-service and consumption models. In addition, the company offers leasing, financing, IT consumption, and utility programs and asset management services for customers to facilitate technology deployment models and the acquisition of various IT solutions, including hardware, software, and services from Hewlett Packard Enterprise and others; consultative-led services; HPE Ezmeral Container Platform; HPE Ezmeral Software Container Platform and HPE Ezmeral Software Data Fabric; OpsRamp; and Hewlett Packard Labs. It serves commercial and large enterprise groups, such as business and public sector enterprises; and through various partners comprising resellers, distribution partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. The company was founded in 1939 and is headquartered in Spring, Texas.

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.