Critical Comparison: D-Wave Quantum (NYSE:QBTS) vs. Xylo Technologies (NASDAQ:XYLO)

Xylo Technologies (NASDAQ:XYLO) and D-Wave Quantum (NYSE:QBTS) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for Xylo Technologies and D-Wave Quantum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xylo Technologies	0	0	0	0	N/A
D-Wave Quantum	0	0	7	0	3.00

D-Wave Quantum has a consensus price target of $2.54, indicating a potential upside of 165.80%. Given D-Wave Quantum’s higher probable upside, analysts plainly believe D-Wave Quantum is more favorable than Xylo Technologies.

Institutional and Insider Ownership

0.3% of Xylo Technologies shares are held by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are held by institutional investors. 2.2% of Xylo Technologies shares are held by insiders. Comparatively, 7.2% of D-Wave Quantum shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xylo Technologies	N/A	N/A	N/A
D-Wave Quantum	-661.66%	N/A	-111.58%

Volatility and Risk

Xylo Technologies has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Earnings and Valuation

This table compares Xylo Technologies and D-Wave Quantum”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xylo Technologies	$57.64 million	0.11	-$16.02 million	N/A	N/A
D-Wave Quantum	$10.12 million	16.15	-$82.71 million	($0.53)	-1.80

Xylo Technologies has higher revenue and earnings than D-Wave Quantum.

Summary

D-Wave Quantum beats Xylo Technologies on 6 of the 10 factors compared between the two stocks.

About Xylo Technologies

Xylo Technologies Ltd, a technology-based company, provides medical-related devices and products in the United States, Europe, Asia, Israel, and internationally. The company operates through Corporate, E-commerce, Online Advertising & Internet Traffic Routing, Online Event Management, and Others segments. It offers Medigus Ultrasonic Surgical Endostapler, an endoscopy system, which is used for the treatment of gastroesophageal reflux disease. The company also develops biological gels to protect patients against biological threats and reduce the intrusion of allergens and viruses through the upper airways and eye cavities. In addition, it provides digital advertising platform; and operates online stores for the sale of various consumer products on the Amazon online marketplace, as well as an online event management and ticketing platform. Further, the company develops wireless vehicle battery charging technologies and modular electronic vehicles. The company was formerly known as Medigus Ltd. and changed its name to Xylo Technologies Ltd in April 2024. Xylo Technologies Ltd was incorporated in 1999 and is headquartered in Tel Aviv-Yafo, Israel.

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.