ARM vs. QBTS: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and QBTS, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.
Company Overview
ARM dwarfs QBTS in market cap, clocking in at 137.89 billion USD—about 31.10 times the 4.43 billion USD of its counterpart.
ARM rides a wilder wave with a beta of 4.41, hinting at bigger swings than QBTS’s steadier 0.89.
Worth noting: ARM flies the ADR flag, tying it to a foreign outfit on U.S. soil, while QBTS sticks to plain-vanilla U.S. listing.
| Symbol | ARM | QBTS |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | D-Wave Quantum Inc. |
| Country | GB | CA |
| Sector | Technology | Technology |
| Industry | Semiconductors | Computer Hardware |
| CEO | Mr. Rene Anthony Andrada Haas | Dr. Alan E. Baratz Ph.D. |
| Price | 130.45 USD | 15.36 USD |
| Market Cap | 137.89 billion USD | 4.43 billion USD |
| Beta | 4.407467 | 0.886 |
| Exchange | NASDAQ | NYSE |
| IPO Date | September 14, 2023 | December 11, 2020 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and QBTS over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Hover over the lines to see the investment’s value and total return (%) at specific dates.
Data is adjusted for dividends and splits.
Valuation Metrics Comparison
The section examines key financial ratios to assess the valuation of ARM and QBTS based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.
- ARM carries a lofty P/E of 170.26, where its market price towers over its earnings from the past year—investors are paying a significant premium for each dollar of profit. In stark contrast, QBTS at -33.33 is negative, revealing a complete absence of net earnings over the same period.
- QBTS has a negative Price-to-Free Cash Flow of -84.98, indicating it’s spent more cash than it’s brought in over the past year—a cash flow shortfall that raises questions about its operational sustainability. Meanwhile, ARM at 220.26 maintains a positive cash position.
| Symbol | ARM | QBTS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 170.26 | -33.33 |
| Forward PEG Ratio (TTM) | 6.09 | 1.25 |
| Price-to-Sales Ratio (P/S, TTM) | 37.33 | 207.56 |
| Price-to-Book Ratio (P/B, TTM) | 21.38 | 21.21 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 220.26 | -84.98 |
| EV-to-EBITDA (TTM) | 221.33 | -30.97 |
| EV-to-Sales (TTM) | 36.85 | 193.69 |
| EV-to-Free Cash Flow (TTM) | 217.45 | -79.30 |
Dividend Comparison
Neither ARM nor QBTS pays dividends, suggesting both reinvest all profits into growth—likely expansion or innovation—favoring long-term value over immediate income.
| Symbol | ARM | QBTS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of ARM and QBTS, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- ARM’s interest coverage reads “--”, suggesting interest expenses are next to nothing—think tiny debt or ultra-low rates—while QBTS at -28.05 teeters below 1.5, earnings barely clearing interest.
| Symbol | ARM | QBTS |
|---|---|---|
| Current Ratio (TTM) | 4.96 | 20.73 |
| Quick Ratio (TTM) | 4.96 | 20.61 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 0.04 |
| Debt-to-Assets Ratio (TTM) | 0.03 | 0.02 |
| Interest Coverage Ratio (TTM) | -- | -28.05 |