Analyzing D-Wave Quantum (NASDAQ:QBTS) and CommVault Systems (NASDAQ:CVLT)

CommVault Systems (NASDAQ:CVLT) and D-Wave Quantum (NASDAQ:QBTS) are both mid-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Institutional & Insider Ownership

93.5% of CommVault Systems shares are owned by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are owned by institutional investors. 0.9% of CommVault Systems shares are owned by insiders. Comparatively, 1.3% of D-Wave Quantum shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares CommVault Systems 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
CommVault Systems	$1.22 billion	5.85	$65.07 million	$1.57	109.31
D-Wave Quantum	$12.43 million	353.06	-$262.64 million	($0.71)	-16.70

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

Analyst Ratings

This is a breakdown of recent ratings for CommVault Systems and D-Wave Quantum, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CommVault Systems	0	10	10	1	2.57
D-Wave Quantum	1	2	13	0	2.75

CommVault Systems presently has a consensus target price of $164.75, suggesting a potential downside of 4.00%. D-Wave Quantum has a consensus target price of $36.27, suggesting a potential upside of 205.82%. Given D-Wave Quantum’s stronger consensus rating and higher possible upside, analysts plainly believe D-Wave Quantum is more favorable than CommVault Systems.

Volatility and Risk

CommVault Systems has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 2.18, meaning that its stock price is 118% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CommVault Systems	N/A	N/A	N/A
D-Wave Quantum	N/A	N/A	N/A

About CommVault Systems

Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.

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.