IonQ vs. D-Wave Quantum: Who’s the Better Investment?

As quantum computing moves toward commercial viability, two publicly traded companies are leading the charge: IonQ (IONQ) and D-Wave Quantum (QBTS). Each company is taking a distinct approach; IonQ is centered on gate-based quantum systems while D-Wave specializes in quantum annealing technology. Both represent unique investment opportunities in a sector projected for exponential growth in the years ahead. With technical advancements, greater commercial use, and broader applications across industries—including pharmaceuticals and automotive manufacturing—the current landscape offers an enticing moment for investors assessing these two pioneers.

Let’s perform a detailed comparison of these stocks to better understand which might present a stronger investment opportunity.

Evaluating IonQ Stock

IonQ has made a name for itself in gate-based quantum computing, leveraging trapped-ion technology to obtain promising results in general-purpose quantum applications. A noteworthy achievement includes outperforming classical computing in life-saving medical device design, collaborating with Ansys to realize up to 12% faster processing performance.

Revenue growth for IonQ is strong; the Zacks Consensus Estimate expects 2025 revenues to reach $85 million, marking a remarkable year-over-year increase of 97.34%. The company has successfully deployed its IonQ Forte Enterprise quantum computer globally through Amazon Braket and its own Quantum Cloud, thus enhancing accessibility for developers seeking to create commercial applications.

Strategically, IonQ is advancing in quantum networking with the acquisition of Qubitekk and a controlling stake in ID Quantique, expanding its patent portfolio to nearly 400 patents related to quantum networking. This effort has led to substantial government contracts, including $54.5 million and $21.1 million agreements with the U.S. Air Force Research Laboratory.

Additionally, IonQ was selected for DARPA’s Quantum Benchmarking Initiative, underscoring its relevant position in the industry. Nevertheless, challenges persist regarding profitability. For 2025, consensus estimates anticipate a loss of 79 cents per share, although this represents an improvement over a $1.56 loss the previous year.

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Exploring QBTS Stock

D-Wave Quantum stands out with its quantum annealing technology, which allows for quicker development of commercial quantum applications compared to competitors. Recently, D-Wave achieved a significant milestone by demonstrating quantum supremacy over classical methods in materials simulation, with its research featured in the reputable journal Science.

The company’s growth outlook is also robust. The Zacks Consensus Estimate for 2025 revenue stands at $23.39 million, an impressive 163.85% increase from 2024. Furthermore, analysts are optimistic about D-Wave’s earnings forecast, with the expected loss for 2025 narrowing to 25 cents per share from a previous 38 cents, indicating a 66.67% improvement compared to last year.

Notably, D-Wave has secured significant commercial contracts, such as a hybrid-quantum application with Ford Otosan that significantly reduced manufacturing scheduling time from 30 minutes to less than five. Additionally, a project with Japan Tobacco has showcased enhanced generative AI capabilities for drug discovery, resulting in more “drug-like” molecular structures.

Financially, D-Wave is showing strength, with bookings up by 128% year over year to $23.9 million and fourth-quarter bookings soaring 502% to $18.3 million. Its cash reserves exceed $300 million, an amount deemed sufficient by management to achieve sustained profitability with lower total investment compared to rivals.

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Comparing Valuation and Stock Performance

From a valuation perspective, IonQ has a two-year forward 12-month price/sales ratio of 58.75x, while D-Wave’s ratio is even higher at 80.69x. Both firms trade at significant premiums, driven by their growth potential rather than current financial results. However, D-Wave’s strong projected revenue growth of 163.85% could indicate better value, despite the higher valuation metric.

IONQ vs. QBTS P/S Ratio (Forward 12 Months)

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Regarding stock performance, both companies experience volatility common with emerging technologies. Nonetheless, D-Wave’s recent achievements could act as a catalyst for increasing share prices. Over the current year, IonQ shares have dropped by 36.9%, underperforming the broader Zacks Computer and Technology sector and the S&P 500 which declined by 22.4% and 15.6%, respectively. In contrast, D-Wave shares fell only 14.3% during the same period.

QBTS Stock Outperforming IONQ & the Sector This Year

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Conclusion: D-Wave Quantum’s Investment Potential

In conclusion, D-Wave Quantum appears to offer a stronger investment opportunity when compared to IonQ. The company’s demonstration of quantum supremacy on real-world challenges, its impressive projected revenue growth, and improving earnings estimates make it an attractive option for investors. Successful deployments with Ford Otosan and Japan Tobacco underscore its ability to apply quantum technology to solve practical problems, enhancing its appeal in a rapidly evolving industry.