Head-To-Head Survey: Materialise (NASDAQ:MTLS) & D-Wave Quantum (NASDAQ:QBTS)

D-Wave Quantum (NASDAQ:QBTS) and Materialise (NASDAQ:MTLS) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Valuation and Earnings

This table compares D-Wave Quantum and Materialise”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D-Wave Quantum	$24.59 million	175.40	-$355.06 million	($0.71)	-16.42
Materialise	$272.77 million	1.87	$8.73 million	$0.27	31.96

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

Risk and Volatility

D-Wave Quantum has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500. Comparatively, Materialise has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for D-Wave Quantum and Materialise, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-Wave Quantum	1	2	13	0	2.75
Materialise	0	2	2	0	2.50

D-Wave Quantum currently has a consensus price target of $36.27, suggesting a potential upside of 211.03%. Materialise has a consensus price target of $10.00, suggesting a potential upside of 15.87%. Given D-Wave Quantum’s stronger consensus rating and higher probable upside, research analysts clearly believe D-Wave Quantum is more favorable than Materialise.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
D-Wave Quantum	-2,001.59%	-26.67%	-24.03%
Materialise	4.85%	5.20%	3.17%

Institutional and Insider Ownership

42.5% of D-Wave Quantum shares are held by institutional investors. Comparatively, 19.3% of Materialise shares are held by institutional investors. 1.3% of D-Wave Quantum shares are held by insiders. Comparatively, 1.2% of Materialise shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

D-Wave Quantum beats Materialise on 7 of the 13 factors compared between the two stocks.

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.

About Materialise

Materialise NV provides additive manufacturing and medical software, and 3D printing services in the Americas, Europe and Africa, and the Asia-Pacific. The company operates through three segments: Materialise Software, Materialise Medical, and Materialise Manufacturing. The Materialise Software segment offers software through programs and platforms that enable and enhance the functionality of 3D printers and of 3D printing operations. Its software interfaces between various types of 3D printers; and various software applications and capturing technologies, including computer-aided design/computer-aided manufacturing packages and 3D scanners. This segment serves 3D printing machine manufacturers; production companies and contract manufacturers in automotive, aerospace, consumer goods, and hearing aid industries; and 3D printing service bureaus through its sales force, Website, and third party distributors. The Materialise Medical segment provides medical software that allows medical-image based analysis, planning, and engineering, as well as patient-specific design and printing of surgical devices and implants. It serves medical device companies, hospitals, universities, research institutes, and industrial companies through its direct sales force, Website, and picture archiving and communication system. The Materialise Manufacturing segment provides 3D printing services, design and engineering services, and rapid prototyping and additive manufacturing of production parts to industrial and commercial customers. The company has collaboration agreements with Zimmer Biomet Holdings, Inc.; Encore Medical, L.P.; DePuy Synthes Companies of Johnson & Johnson; Limacorporate Spa; Mathys AG; Corin Ltd; Smith & Nephew Inc.; Corin Ltd; Medtronic Inc.; and Abbott Laboratories Inc. Materialise NV was incorporated in 1990 and is headquartered in Leuven, Belgium.