Critical Contrast: JOYY (NASDAQ:YY) versus D-Wave Quantum (NYSE:QBTS)

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

Institutional & Insider Ownership

42.5% of D-Wave Quantum shares are owned by institutional investors. Comparatively, 36.8% of JOYY shares are owned by institutional investors. 7.2% of D-Wave Quantum shares are owned by company insiders. Comparatively, 43.0% of JOYY shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares D-Wave Quantum and JOYY”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D-Wave Quantum	$10.12 million	16.12	-$82.71 million	($0.53)	-1.80
JOYY	$2.27 billion	0.91	$301.82 million	$5.31	6.84

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

Analyst Ratings

This is a summary of current ratings and target prices for D-Wave Quantum and JOYY, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-Wave Quantum	0	0	7	0	3.00
JOYY	0	3	0	0	2.00

D-Wave Quantum currently has a consensus target price of $2.54, suggesting a potential upside of 166.36%. JOYY has a consensus target price of $39.67, suggesting a potential upside of 9.18%. Given D-Wave Quantum’s stronger consensus rating and higher probable upside, analysts clearly believe D-Wave Quantum is more favorable than JOYY.

Volatility & Risk

D-Wave Quantum has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, JOYY has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
D-Wave Quantum	-661.66%	N/A	-111.58%
JOYY	9.53%	4.98%	3.15%

Summary

JOYY beats D-Wave Quantum on 8 of the 14 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 JOYY

JOYY Inc., together with its subsidiaries, operates social media platforms that offer users engaging and experience across various video-based social platforms. It operates through two segments, BIGO and All Other. The company operates Bigo Live, a social live streaming platform, that provides an interactive online stage for users to host and watch live streaming sessions, share their life moments, showcase their talents, and interact with people worldwide; Likee, a short-form video social platform, which enables users to discover, create, and share short videos, with video creation tools and personalized feeds; imo, an instant messenger platform, that provides audio and video communication services; Hago, a social networking platform that offers casual games integrating social features, such as audio and video multi-user chatrooms and 3D virtual interactive party games; and Shopline, a smart commerce platform, that provides solutions and services to enable merchants in creating and growing their brands online and reach customers through various sales channels, including e-commerce platforms, social commerce, and physical retail stores. It operates in the People's Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, Southeast Asia, and internationally. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.