IonQ vs IBM Which Performs Better?

IonQ and IBM are two leading companies in the quantum computing industry, offering investors unique opportunities in the burgeoning field of advanced technology. IonQ, a relatively newer player in the market, is attracting attention with its innovative approach to quantum computing. On the other hand, IBM, a long-standing tech giant, has been making significant strides in developing its own quantum computing capabilities. Investors looking to capitalize on the potential of quantum computing will find both companies worth considering for their stock portfolios.

IonQ or IBM?

When comparing IonQ and IBM, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between IonQ and IBM.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. IonQ has a dividend yield of -%, while IBM has a dividend yield of 2.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IonQ reports a 5-year dividend growth of 0.00% year and a payout ratio of -0.02%. On the other hand, IBM reports a 5-year dividend growth of 1.32% year and a payout ratio of 95.65%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with IonQ P/E ratio at -42.26 and IBM's P/E ratio at 33.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IonQ P/B ratio is 16.64 while IBM's P/B ratio is 8.69.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IonQ has seen a 5-year revenue growth of 1.17%, while IBM's is -0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IonQ's ROE at -36.82% and IBM's ROE at 27.14%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $29.53 for IonQ and $230.26 for IBM. Over the past year, IonQ's prices ranged from $6.22 to $38.45, with a yearly change of 518.15%. IBM's prices fluctuated between $157.89 and $239.35, with a yearly change of 51.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.