Contrasting Diebold Nixdorf (NYSE:DBD) and IonQ (NYSE:IONQ)

Diebold Nixdorf (NYSE:DBD) and IonQ (NYSE:IONQ) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Institutional & Insider Ownership

97.0% of Diebold Nixdorf shares are held by institutional investors. Comparatively, 41.4% of IonQ shares are held by institutional investors. 1.1% of Diebold Nixdorf shares are held by insiders. Comparatively, 0.6% of IonQ shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Diebold Nixdorf and IonQ”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diebold Nixdorf	$3.87 billion	0.59	$94.60 million	$3.06	22.15
IonQ	$130.02 million	110.34	-$510.38 million	($4.66)	-8.08

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diebold Nixdorf	0	0	2	1	3.33
IonQ	1	4	9	0	2.57

Diebold Nixdorf currently has a consensus price target of $100.00, suggesting a potential upside of 47.55%. IonQ has a consensus price target of $69.92, suggesting a potential upside of 85.69%. Given IonQ’s higher possible upside, analysts clearly believe IonQ is more favorable than Diebold Nixdorf.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Diebold Nixdorf	2.87%	21.16%	5.90%
IonQ	-553.27%	-22.29%	-13.20%

Risk & Volatility

Diebold Nixdorf has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, IonQ has a beta of 3.3, suggesting that its stock price is 230% more volatile than the S&P 500.

Summary

Diebold Nixdorf beats IonQ on 11 of the 15 factors compared between the two stocks.

About Diebold Nixdorf

Diebold Nixdorf, Incorporated engages in the automating, digitizing, and transforming the way people bank and shop worldwide. It operates through two segments, Banking and Retail. The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools, and kiosk technologies, as well as physical security solutions; and front-end applications for consumer connection points and back-end platforms that manage channel transactions, operations and integration, and facilitate omnichannel transactions, endpoint monitoring, remote asset management, customer marketing, merchandise management, and analytics. It also provides banking product-related services comprising proactive monitoring and rapid resolution of incidents through remote service capabilities or an on-site visit; first- and second-line maintenance, preventive maintenance, and on-demand services; managed and outsourcing services, such as business processes, solution management, upgrades, and transaction processing; and cash management services. In addition, the company offers DN Vynamic software suite to simplify and enhance the consumer experience; modular and integrated point of sale and self-checkout terminals; printers, scales, and mobile scanners; and banknote and coin processing systems, as well as ordering kiosks. Additionally, it provides retail customer's product-related services, such as on-demand and professional services; maintenance and availability services; implementation services; managed mobility services; monitoring and advanced analytics; and store life-cycle management services. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf, Incorporated in December 2016. Diebold Nixdorf, Incorporated was founded in 1859 and is headquartered in North Canton, Ohio.

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.