HP Inc. (HPQ) vs D-Wave Quantum Inc. (QBTS)

HP Inc. and D-Wave Quantum Inc. are both Computer Hardware companies. HP Inc. is the larger, with a market value of $28.0B against $6.7B — 4.2× the size. D-Wave Quantum Inc. has negative trailing earnings, so its P/E is not meaningful; HP Inc. trades at 11.8×. HP Inc. grew revenue faster over the last twelve months: 8.14% against −44.2%. HP Inc. has the higher net margin (4.14% vs −2,001.6%) and the higher return on invested capital (55.8% vs −18.6%). Across the 18 metrics below, HP Inc. leads on 13 and D-Wave Quantum Inc. on 5.

Valuation

Metric HPQ QBTS Computer Hardware median
P/E 11.80 n/m 20.64
P/S 0.49 519.62 2.95
P/B n/m 5.96 2.78
Price to free cash flow 7.41 n/m 25.64
EV/EBITDA 7.81 n/m 20.51
EV/Sales 0.55 478.48 3.48
Earnings yield 8.47% (4.08%) (4.08%)
Free cash flow yield 13.50% (1.86%) (2.90%)

Profitability

Metric HPQ QBTS Computer Hardware median
Gross margin 19.87% 64.19% 37.84%
Operating margin 5.45% (1,372.88%) (0.80%)
Net margin 4.14% (2,001.59%) (14.15%)
Free cash flow margin 6.56% (963.82%) 0.00%
Return on equity (493.66%) (27.98%) (2.10%)
Return on assets 5.73% (24.84%) (0.42%)
Return on invested capital 55.83% (18.64%) 0.00%

Growth

Metric HPQ QBTS Computer Hardware median
Revenue growth (TTM) 8.14% (44.22%) 27.21%
EPS growth (last fiscal year) (5.69%) (48.00%) —
Revenue growth, 5-year CAGR (0.48%) 36.65% 0.81%
Net income growth, 5-year CAGR (2.12%) 0.00% 0.00%

Health

Metric HPQ QBTS Computer Hardware median
Debt to equity (85.52) 0.03 0.00
Current ratio 0.79 20.55 2.76
Net debt to EBITDA 1.25 8.65 0.46

Dividend

Metric HPQ QBTS Computer Hardware median
Dividend yield 3.91% — 2.47%
Payout ratio 0.45 0.00 0.00

Size

Metric HPQ QBTS Computer Hardware median
Market cap 27.98b 6.66b 462.08m

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