D-Wave Quantum (NYSE:QBTS – Get Free Report) and Guidewire Software (NYSE:GWRE – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Institutional & Insider Ownership
42.5% of D-Wave Quantum shares are held by institutional investors. 3.2% of D-Wave Quantum shares are held by insiders. Comparatively, 0.5% of Guidewire Software shares are held 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.
Risk & Volatility
D-Wave Quantum has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, Guidewire Software has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| D-Wave Quantum | 2 | 0 | 14 | 0 | 2.75 |
| Guidewire Software | 1 | 3 | 11 | 1 | 2.75 |
D-Wave Quantum presently has a consensus target price of $36.50, suggesting a potential upside of 126.82%. Guidewire Software has a consensus target price of $249.85, suggesting a potential upside of 60.16%. Given D-Wave Quantum’s higher possible upside, equities research analysts clearly believe D-Wave Quantum is more favorable than Guidewire Software.
Profitability
This table compares D-Wave Quantum and Guidewire Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| D-Wave Quantum | -1,444.10% | -58.58% | -48.13% |
| Guidewire Software | 14.11% | 13.44% | 7.48% |
Earnings & Valuation
This table compares D-Wave Quantum and Guidewire Software”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| D-Wave Quantum | $24.59 million | 242.02 | -$355.06 million | ($1.10) | -14.63 |
| Guidewire Software | $1.27 billion | 10.38 | $69.80 million | $2.20 | 70.91 |
Guidewire Software has higher revenue and earnings than D-Wave Quantum. D-Wave Quantum is trading at a lower price-to-earnings ratio than Guidewire Software, indicating that it is currently the more affordable of the two stocks.
Summary
Guidewire Software beats D-Wave Quantum on 8 of the 14 factors compared between the two stocks.
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.
About Guidewire Software
Guidewire Software, Inc. provides a platform for property and casualty (P&C) insurers worldwide. The company offers Guidewire InsuranceSuite Cloud, such as PolicyCenter Cloud, BillingCenter Cloud, and ClaimCenter Cloud applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed. In addition, the company offers Guidewire Rating Management to manage the pricing of insurance products; and Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes. Further, it provides Guidewire Underwriting Management, a cloud-based integrated business application; Guidewire AppReader, a submission intake management solution; Guidewire ClaimCenter Package for the London market supports the claims workflow used by London Market insurers and brokers; Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice; and Guidewire for Salesforce to provide customer information regarding policies and claims. Additionally, the company offers Guidewire Predict, a P&C-specific machine-learning platform; Guidewire HazardHub that allows insurers to understand, assess, price, and manage property risk; Guidewire Canvas, Guidewire Compare, and Guidewire Explore cloud-native applications; and Guidewire Cyence, a cyber-risk economic modeling product. The company was incorporated in 2001 and is headquartered in San Mateo, California.
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