Reviewing IonQ (NYSE:IONQ) & International Business Machines (NYSE:IBM)

IonQ (NYSE:IONQ) and International Business Machines (NYSE:IBM) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares IonQ and International Business Machines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IonQ	-885.21%	-67.11%	-57.89%
International Business Machines	9.11%	37.62%	7.08%

Earnings & Valuation

This table compares IonQ and International Business Machines”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IonQ	$43.07 million	422.98	-$331.65 million	($2.01)	-30.53
International Business Machines	$64.04 billion	4.10	$6.02 billion	$6.16	45.81

International Business Machines has higher revenue and earnings than IonQ. IonQ is trading at a lower price-to-earnings ratio than International Business Machines, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

IonQ has a beta of 2.54, meaning that its stock price is 154% more volatile than the S&P 500. Comparatively, International Business Machines has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Institutional & Insider Ownership

41.4% of IonQ shares are owned by institutional investors. Comparatively, 59.0% of International Business Machines shares are owned by institutional investors. 5.2% of IonQ shares are owned by insiders. Comparatively, 0.2% of International Business Machines shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for IonQ and International Business Machines, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IonQ	0	5	7	0	2.58
International Business Machines	1	9	7	1	2.44

IonQ currently has a consensus price target of $58.33, suggesting a potential downside of 4.95%. International Business Machines has a consensus price target of $275.00, suggesting a potential downside of 2.55%. Given International Business Machines’ higher possible upside, analysts clearly believe International Business Machines is more favorable than IonQ.

Summary

International Business Machines beats IonQ on 10 of the 14 factors compared between the two stocks.

About IonQ

IonQ, Inc. engages in the development of general-purpose quantum computing systems in the United States. It sells access to quantum computers of various qubit capacities. The company makes access to its quantum computers through cloud platforms, such as Amazon Web Services (AWS) Amazon Braket, Microsoft’s Azure Quantum, and Google’s Cloud Marketplace, as well as through its cloud service. It also provides contracts associated with the design, development, and construction of specialized quantum computing hardware systems; maintenance and support services; and consulting services related to co-developing algorithms on quantum computing systems. The company was founded in 2015 and is headquartered in College Park, Maryland.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry. The Infrastructure segment provides on-premises and cloud based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, facilitates IBM clients’ acquisition of hardware, software, and services. The company has a strategic partnership to various companies including hyperscalers, service providers, global system integrators, and software and hardware vendors that includes Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.