SMC Entertainment (OTCMKTS:SMCE – Get Free Report) and D-Wave Quantum (NYSE:QBTS – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
42.5% of D-Wave Quantum shares are held by institutional investors. 41.2% of SMC Entertainment shares are held by insiders. Comparatively, 7.2% of D-Wave Quantum shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
SMC Entertainment has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SMC Entertainment | 0 | 0 | 0 | 0 | 0.00 |
| D-Wave Quantum | 0 | 0 | 6 | 0 | 3.00 |
D-Wave Quantum has a consensus target price of $6.71, suggesting a potential upside of 2.67%. Given D-Wave Quantum’s stronger consensus rating and higher possible upside, analysts clearly believe D-Wave Quantum is more favorable than SMC Entertainment.
Profitability
This table compares SMC Entertainment and D-Wave Quantum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SMC Entertainment | N/A | N/A | -5,893.58% |
| D-Wave Quantum | -783.28% | N/A | -134.62% |
Valuation and Earnings
This table compares SMC Entertainment and D-Wave Quantum”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SMC Entertainment | N/A | N/A | -$1.56 million | ($0.01) | -0.28 |
| D-Wave Quantum | $8.76 million | 200.76 | -$82.71 million | ($0.42) | -15.56 |
SMC Entertainment has higher earnings, but lower revenue than D-Wave Quantum. D-Wave Quantum is trading at a lower price-to-earnings ratio than SMC Entertainment, indicating that it is currently the more affordable of the two stocks.
Summary
D-Wave Quantum beats SMC Entertainment on 7 of the 11 factors compared between the two stocks.
About SMC Entertainment
SMC Entertainment, Inc. focuses on the acquisition and support of financial technology companies in the United States. The company develops and provides technology that combines artificial intelligence (AI) /machine learning (ML) driven Quantitative investing (IQ Engine) with AI-enabled wealth management tools; and offers IQ Engine, an AI driven contextual analyzer that creates a repository of various equity research. It markets a software-as-a-service (SaaS) proprietary platform for certified public accountants, financial institutions, and registered investment advisors. The company was formerly known as SMC Recordings, Inc. and changed its name to SMC Entertainment, Inc. in May 2011. SMC Entertainment, Inc. was incorporated in 1998 and is based in Boca Raton, Florida.
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.
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