Phunware (NASDAQ:PHUN – Get Free Report) and D-Wave Quantum (NYSE:QBTS – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Valuation and Earnings
This table compares Phunware 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 | |
| Phunware | $4.83 million | 9.40 | -$52.78 million | N/A | N/A |
| D-Wave Quantum | $9.64 million | 20.25 | -$82.71 million | ($0.53) | -2.15 |
Phunware has higher earnings, but lower revenue than D-Wave Quantum.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phunware | 0 | 0 | 3 | 0 | 3.00 |
| D-Wave Quantum | 0 | 0 | 5 | 0 | 3.00 |
Phunware currently has a consensus target price of $19.00, suggesting a potential upside of 246.08%. D-Wave Quantum has a consensus target price of $2.80, suggesting a potential upside of 145.61%. Given Phunware’s higher probable upside, equities analysts clearly believe Phunware is more favorable than D-Wave Quantum.
Institutional & Insider Ownership
7.6% of Phunware shares are held by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are held by institutional investors. 1.2% of Phunware shares are held by insiders. Comparatively, 7.2% of D-Wave Quantum shares are held by 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.
Risk and Volatility
Phunware has a beta of 2.42, suggesting that its stock price is 142% more volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.
Profitability
This table compares Phunware and D-Wave Quantum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phunware | -257.36% | -403.47% | -111.93% |
| D-Wave Quantum | -778.56% | N/A | -131.66% |
Summary
D-Wave Quantum beats Phunware on 6 of the 11 factors compared between the two stocks.
About Phunware
Phunware, Inc., together with its subsidiaries, provides integrated software platform that equips companies with the products, solutions, and services to engage, manage, and monetize their mobile application portfolios in the United States and internationally. The company's products and services include mobile software and application transaction solutions comprise integration of software development kit (SDK) licenses, which consists of analytics that offers data related to application use and engagement; content management that allows application administrators to create and manage app content in a cloud-based portal; alerts, notifications, and messaging, which enables brands to send messages; marketing automation that enables location-triggered messages and workflow; advertising; and location-based services, such as mapping, navigation, wayfinding, workflow, asset management, and policy enforcement. It is also involved in the integration of its SDK licenses into existing applications maintained by its customers, as well as custom application development and support services; and provision of cloud-based vertical solutions for healthcare, retail, sports, aviation, real estate, hospitality, education, and other applications, as well as application transactions, including re-occurring and one-time transactional media purchases for application discovery, user acquisition and audience building, audience engagement, and audience monetization. Phunware, Inc. was founded in 2009 and is headquartered in Austin, 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.
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