Critical Contrast: D-Wave Quantum (NASDAQ:QBTS) and Audioeye (NASDAQ:AEYE)

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

Risk and Volatility

Audioeye has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 2.35, meaning that its share price is 135% more volatile than the S&P 500.

Valuation and Earnings

This table compares Audioeye 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
Audioeye	$40.31 million	4.50	-$3.08 million	($0.24)	-59.58
D-Wave Quantum	$24.59 million	148.02	-$355.06 million	($0.43)	-22.88

Audioeye has higher revenue and earnings than D-Wave Quantum. Audioeye 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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Audioeye	1	1	4	0	2.50
D-Wave Quantum	1	2	15	0	2.78

Audioeye currently has a consensus price target of $14.62, indicating a potential upside of 2.27%. D-Wave Quantum has a consensus price target of $30.00, indicating a potential upside of 204.88%. Given D-Wave Quantum’s stronger consensus rating and higher possible upside, analysts clearly believe D-Wave Quantum is more favorable than Audioeye.

Institutional and Insider Ownership

51.1% of Audioeye shares are owned by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are owned by institutional investors. 25.9% of Audioeye shares are owned by insiders. Comparatively, 1.3% of D-Wave Quantum shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Audioeye	-7.12%	163.66%	19.57%
D-Wave Quantum	-1,188.79%	-15.39%	-14.38%

Summary

Audioeye beats D-Wave Quantum on 8 of the 13 factors compared between the two stocks.

About Audioeye

AudioEye, Inc. (NASDAQ: AEYE) provides digital accessibility technology and services designed to help organizations make websites and digital content more usable for people with disabilities. Its platform is intended to support compliance with accessibility standards and regulations, including the Web Content Accessibility Guidelines (WCAG) and requirements associated with the Americans with Disabilities Act. The company’s offerings include automated accessibility testing, monitoring and remediation tools, an accessibility interface for website visitors, and access to accessibility experts who can assist with testing and compliance programs.

About D-Wave Quantum

D-Wave Quantum develops quantum computing systems, software and services for commercial, government and research users. The company focuses on quantum annealing, an approach designed to help solve complex optimization and sampling problems, and offers hybrid tools that combine quantum processing with classical computing. Its offerings include Advantage quantum computers, the Leap quantum cloud service, and software for building and running applications. D-Wave’s technology is used to explore challenges such as scheduling, resource allocation and supply-chain optimization.