SofTech (OTCMKTS:SOFT) vs. IonQ (NYSE:IONQ) Critical Survey

SofTech (OTCMKTS:SOFT) and IonQ (NYSE:IONQ) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Insider and Institutional Ownership

41.4% of IonQ shares are held by institutional investors. 28.6% of SofTech shares are held by insiders. Comparatively, 11.6% of IonQ 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.

Earnings and Valuation

This table compares SofTech and IonQ”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SofTech	N/A	N/A	N/A	N/A	N/A
IonQ	$43.06 million	237.92	-$157.77 million	($1.49)	-30.85

SofTech has higher earnings, but lower revenue than IonQ.

Volatility & Risk

SofTech has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500. Comparatively, IonQ has a beta of 2.46, indicating that its stock price is 146% more volatile than the S&P 500.

Profitability

This table compares SofTech and IonQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SofTech	N/A	N/A	N/A
IonQ	-457.85%	-36.82%	-32.48%

Analyst Ratings

This is a breakdown of current ratings for SofTech and IonQ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SofTech	0	0	0	0	0.00
IonQ	0	2	4	0	2.67

IonQ has a consensus price target of $38.33, indicating a potential downside of 16.61%. Given IonQ’s stronger consensus rating and higher probable upside, analysts clearly believe IonQ is more favorable than SofTech.

Summary

IonQ beats SofTech on 6 of the 10 factors compared between the two stocks.

About SofTech

SofTech, Inc. develops, markets, distributes, and supports computer aided design (CAD), and product data management and collaboration computer solutions for the product lifecycle management (PLM) industry primarily in North America, Europe, and Asia. The company offers ProductCenter, a collaborative PLM solution, which manages the engineering data and electronic files of discrete parts designed in various used third party proprietary design technologies; delivers a combination of document management, design integration, configuration control, change management, bill of materials management, and integration capability with other enterprise-wide systems; enables secure management of product information; and allows engineers and the design chain to manage, share, modify, and track product data and documents in the product development lifecycle. Its ProductCenter technology also allows employees, customers, suppliers, and other team members to securely exchange product information while maintaining a centralized database of critical product data; and enables integration with other business applications, such as enterprise resource planning, supply chain management, and customer relationship management for data exchange across the product lifecycle. In addition, the company offers Connector platform, a technology that allows for a direct interface between Aras Corporation’s Innovator solution and CAD products. SofTech, Inc. markets and distributes its products and services primarily through a direct sales force and its service organization, as well as through resellers. The company was founded in 1969 and is headquartered in Lowell, Massachusetts.

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.