Critical Comparison: Lenovo Group (OTCMKTS:LNVGF) versus D-Wave Quantum (NYSE:QBTS)

D-Wave Quantum (NYSE:QBTS) and Lenovo Group (OTCMKTS:LNVGF) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
D-Wave Quantum	-2,957.23%	-44.06%	-38.48%
Lenovo Group	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for D-Wave Quantum and Lenovo Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-Wave Quantum	1	1	13	1	2.88
Lenovo Group	0	0	0	0	0.00

D-Wave Quantum currently has a consensus target price of $36.80, suggesting a potential upside of 68.58%. Given D-Wave Quantum’s stronger consensus rating and higher possible upside, equities research analysts plainly believe D-Wave Quantum is more favorable than Lenovo Group.

Institutional & Insider Ownership

42.5% of D-Wave Quantum shares are owned by institutional investors. Comparatively, 23.3% of Lenovo Group shares are owned by institutional investors. 1.3% of D-Wave Quantum shares are owned by 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 & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D-Wave Quantum	$12.44 million	648.92	-$355.06 million	($1.13)	-19.32
Lenovo Group	N/A	N/A	N/A	$0.09	39.69

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

Summary

D-Wave Quantum beats Lenovo Group on 7 of the 12 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 Lenovo Group

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. The company offers commercial and consumer personal computers, as well as servers and workstations; and a family of mobile Internet devices, including tablets and smartphones. In addition, it provides laptops, monitors, accessories, smart home and collaboration solutions, augmented and virtual reality, commercial internet of things, and smart infrastructure data center solutions. Further, the company manufactures and distributes IT products, computers, computer hardware, and peripheral equipment; and offers IT, business planning, management, supply chain, finance, administration support, procurement agency, data management, intellectual property, and investment management services. Additionally, it is involved in the retail and service business for consumer electronic products and related digital services; development, ownership, licensing, and sale of communications hardware and software; and develops software and applications. Furthermore, the company distributes smartphone, tablet, server, and storage. It operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Lenovo Group Limited was founded in 1984 and is headquartered in Quarry Bay, Hong Kong.