Head to Head Analysis: Playtika (NASDAQ:PLTK) & D-Wave Quantum (NYSE:QBTS)

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

Analyst Recommendations

This is a breakdown of current recommendations for D-Wave Quantum and Playtika, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-Wave Quantum	0	0	5	0	3.00
Playtika	1	5	4	0	2.30

D-Wave Quantum currently has a consensus price target of $2.80, suggesting a potential upside of 85.43%. Playtika has a consensus price target of $10.43, suggesting a potential upside of 50.00%. Given D-Wave Quantum’s stronger consensus rating and higher probable upside, research analysts plainly believe D-Wave Quantum is more favorable than Playtika.

Earnings & Valuation

This table compares D-Wave Quantum and Playtika’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	$8.76 million	27.88	-$82.71 million	($0.62)	-2.44
Playtika	$2.57 billion	1.00	$235.00 million	$0.64	10.86

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
D-Wave Quantum	-940.27%	N/A	-163.01%
Playtika	9.15%	-81.85%	9.16%

Risk & Volatility

D-Wave Quantum has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Playtika has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Insider and Institutional Ownership

42.5% of D-Wave Quantum shares are owned by institutional investors. Comparatively, 11.9% of Playtika shares are owned by institutional investors. 13.1% of D-Wave Quantum shares are owned by insiders. Comparatively, 4.2% of Playtika 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.

Summary

D-Wave Quantum beats Playtika 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 Playtika

Playtika Holding Corp., together with its subsidiaries, develops mobile games in the United States, Europe, Middle East, Africa, Asia pacific, and internationally. The company owns a portfolio of casual and social casino-themed games. It distributes its games to the end customer through various web and mobile platforms and direct-to-consumer platforms. Playtika Holding Corp. was founded in 2010 and is headquartered in Herzliya Pituach, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding UK II Limited.