GitLab (NASDAQ:GTLB – Get Free Report) and D-Wave Quantum (NASDAQ:QBTS – Get Free Report) are both mid-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Insider & Institutional Ownership
95.0% of GitLab shares are owned by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are owned by institutional investors. 10.6% of GitLab shares are owned by insiders. Comparatively, 1.3% of D-Wave Quantum shares are owned 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.
Analyst Ratings
This is a breakdown of current ratings and target prices for GitLab and D-Wave Quantum, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GitLab | 4 | 17 | 7 | 0 | 2.11 |
| D-Wave Quantum | 1 | 2 | 13 | 0 | 2.75 |
GitLab currently has a consensus price target of $51.75, suggesting a potential downside of 5.10%. D-Wave Quantum has a consensus price target of $36.27, suggesting a potential upside of 211.84%. Given D-Wave Quantum’s stronger consensus rating and higher possible upside, analysts clearly believe D-Wave Quantum is more favorable than GitLab.
Volatility & Risk
GitLab has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500.
Profitability
This table compares GitLab and D-Wave Quantum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GitLab | -4.99% | -1.28% | -0.77% |
| D-Wave Quantum | -2,001.59% | -26.67% | -24.03% |
Valuation & Earnings
This table compares GitLab and D-Wave Quantum”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GitLab | $1.06 billion | 8.61 | -$55.96 million | ($0.32) | -170.41 |
| D-Wave Quantum | $24.59 million | 174.95 | -$355.06 million | ($0.71) | -16.38 |
GitLab has higher revenue and earnings than D-Wave Quantum. GitLab is trading at a lower price-to-earnings ratio than D-Wave Quantum, indicating that it is currently the more affordable of the two stocks.
Summary
GitLab beats D-Wave Quantum on 8 of the 14 factors compared between the two stocks.
About GitLab
GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. The company helps organizations to plan, build, secure, and deploy software to drive business outcomes. It also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. GitLab Inc. was founded in 2011 and is headquartered in San Francisco, California.
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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