IonQ (NYSE:IONQ – Get Free Report) and International Business Machines (NYSE:IBM – Get Free Report) are both large-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Profitability
This table compares IonQ and International Business Machines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IonQ | -885.21% | -67.11% | -57.89% |
| International Business Machines | 12.09% | 37.76% | 7.18% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for IonQ and International Business Machines, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IonQ | 2 | 5 | 7 | 0 | 2.36 |
| International Business Machines | 1 | 7 | 8 | 1 | 2.53 |
Institutional and Insider Ownership
41.4% of IonQ shares are held by institutional investors. Comparatively, 59.0% of International Business Machines shares are held by institutional investors. 5.2% of IonQ shares are held by company insiders. Comparatively, 0.2% of International Business Machines shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
IonQ has a beta of 2.6, meaning that its share price is 160% more volatile than the S&P 500. Comparatively, International Business Machines has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.
Valuation & Earnings
This table compares IonQ and International Business Machines”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IonQ | $43.07 million | 486.41 | -$331.65 million | ($2.01) | -30.00 |
| International Business Machines | $62.75 billion | 4.58 | $6.02 billion | $8.36 | 36.82 |
International Business Machines has higher revenue and earnings than IonQ. IonQ is trading at a lower price-to-earnings ratio than International Business Machines, indicating that it is currently the more affordable of the two stocks.
Summary
International Business Machines beats IonQ on 11 of the 15 factors compared between the two stocks.
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.
About International Business Machines
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry. The Infrastructure segment provides on-premises and cloud based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, facilitates IBM clients’ acquisition of hardware, software, and services. The company has a strategic partnership to various companies including hyperscalers, service providers, global system integrators, and software and hardware vendors that includes Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
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