Financial Contrast: PowerFleet (NASDAQ:AIOT) & D-Wave Quantum (NASDAQ:QBTS)

D-Wave Quantum (NASDAQ:QBTS) and PowerFleet (NASDAQ:AIOT) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Risk and Volatility

D-Wave Quantum has a beta of 2.15, suggesting that its stock price is 115% more volatile than the S&P 500. Comparatively, PowerFleet has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for D-Wave Quantum and PowerFleet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-Wave Quantum	1	2	13	0	2.75
PowerFleet	2	1	3	0	2.17

D-Wave Quantum currently has a consensus price target of $36.27, indicating a potential upside of 123.25%. PowerFleet has a consensus price target of $7.40, indicating a potential upside of 144.63%. Given PowerFleet’s higher possible upside, analysts plainly believe PowerFleet is more favorable than D-Wave Quantum.

Earnings & Valuation

This table compares D-Wave Quantum and PowerFleet”s top-line 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	244.38	-$355.06 million	($0.71)	-22.88
PowerFleet	$443.78 million	0.91	-$20.55 million	($0.14)	-21.61

PowerFleet has higher revenue and earnings than D-Wave Quantum. D-Wave Quantum is trading at a lower price-to-earnings ratio than PowerFleet, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

42.5% of D-Wave Quantum shares are owned by institutional investors. Comparatively, 73.4% of PowerFleet shares are owned by institutional investors. 1.3% of D-Wave Quantum shares are owned by insiders. Comparatively, 5.9% of PowerFleet shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
D-Wave Quantum	-2,001.59%	-26.67%	-24.03%
PowerFleet	-4.16%	0.48%	0.24%

Summary

PowerFleet beats D-Wave Quantum on 10 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 PowerFleet

PowerFleet, Inc. engages in the provision of fleet management solutions for logistics, industrial, and vehicles. It offers wireless Internet of Things and machine to machine solutions for securing, controlling, tracking, and managing enterprise assets such as industrial trucks, tractor trailers, containers, cargo, and vehicle and truck fleets. It operates through the following geographical segments: United States, Israel, and Other. The company was founded in 1993 and is headquartered in Woodcliff Lake, NJ.