Paycom Software (NYSE:PAYC – Get Free Report) and D-Wave Quantum (NASDAQ:QBTS – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.
Analyst Ratings
This is a summary of recent ratings for Paycom Software and D-Wave Quantum, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Paycom Software | 0 | 9 | 5 | 1 | 2.47 |
| D-Wave Quantum | 1 | 2 | 13 | 0 | 2.75 |
Paycom Software presently has a consensus price target of $215.00, suggesting a potential downside of 4.19%. D-Wave Quantum has a consensus price target of $36.27, suggesting a potential upside of 106.53%. Given D-Wave Quantum’s stronger consensus rating and higher possible upside, analysts plainly believe D-Wave Quantum is more favorable than Paycom Software.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Paycom Software | $2.05 billion | 4.93 | $453.40 million | $9.41 | 23.85 |
| D-Wave Quantum | $24.59 million | 264.16 | -$355.06 million | ($0.71) | -24.73 |
Paycom Software has higher revenue and earnings than D-Wave Quantum. D-Wave Quantum is trading at a lower price-to-earnings ratio than Paycom Software, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
87.8% of Paycom Software shares are owned by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are owned by institutional investors. 13.2% of Paycom Software shares are owned by insiders. Comparatively, 1.3% of D-Wave Quantum shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Paycom Software has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, D-Wave Quantum has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500.
Profitability
This table compares Paycom Software and D-Wave Quantum’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Paycom Software | 22.78% | 37.06% | 8.17% |
| D-Wave Quantum | -2,001.59% | -26.67% | -24.03% |
Summary
Paycom Software beats D-Wave Quantum on 10 of the 15 factors compared between the two stocks.
About Paycom Software
Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling, time-off requests, labor allocation, labor management reports/push reporting, geofencing/geotracking, and Microfence, a proprietary Bluetooth. Its HCM solution also offers payroll applications comprising better employee transaction interface, payroll and tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, mileage tracker/fixed and variable rates, garnishment administration, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning, as well as my analytics. In addition, its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration/benefits to carrier; benefit enrollment service; COBRA administration; personnel action and performance discussion forms; surveys; 401(k) reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.
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.
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