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MSFT vs. QBTS: Microsoft vs. D-Wave Quantum Stock Comparison

How do Microsoft (MSFT) and D-Wave Quantum (QBTS) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Microsoft (MSFT) and D-Wave Quantum (QBTS) both belong to the Software industry, though MSFT is classified under Systems Software while QBTS falls under Application Software.

Microsoft (MSFT) is a mega-cap company at 3,940.41 billion USD, while D-Wave Quantum (QBTS) is mid-cap at 4.05 billion USD — a noticeably different scale category that can shape how their valuation multiples are read.

Microsoft (MSFT) has more than two decades of public-market history since March 13, 1986, whereas D-Wave Quantum (QBTS) listed on December 11, 2020 and has a much shorter record to draw on.

Company profile comparison for Microsoft (MSFT) and D-Wave Quantum (QBTS)
Profile ItemMSFTQBTS
NameMicrosoft Corporation Common StockD-Wave Quantum Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareApplication Software
Market Capitalization3,940.41 billion USD4.05 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateMarch 13, 1986December 11, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MSFT
QBTS
GSPC
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Microsoft (MSFT) and D-Wave Quantum (QBTS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Microsoft (MSFT) and D-Wave Quantum (QBTS). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Microsoft (MSFT) and D-Wave Quantum (QBTS)
MetricMSFTQBTS
Total Return (1Y)10.30%-61.09%
Total Return (3Y, Annualized)15.53%152.63%
Total Return (5Y, Annualized)11.01%3.13%

Risk Profile

Drawdown History

MSFT
QBTS
GSPC
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Microsoft (MSFT) and D-Wave Quantum (QBTS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

D-Wave Quantum (QBTS) carries a highly aggressive beta of 2.31, indicating much higher sensitivity to broad-market moves, whereas Microsoft (MSFT) is closer to market-like at 1.03 — a noticeable difference in market-sensitivity profile.

Risk profile metrics for Microsoft (MSFT) and D-Wave Quantum (QBTS)
MetricMSFTQBTS
Volatility (1Y, Annualized)33.91%104.32%
Beta (5Y)1.032.31
Max Drawdown (5Y)-37.15%-96.67%
Avg. Volume (3M)22.95M15.15M

Risk-Adjusted Performance

Risk-Return Positioning

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MSFT and QBTS are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and D-Wave Quantum (QBTS)
MetricMSFTQBTS
Sharpe Ratio (1Y)0.18-0.63
Sortino Ratio (1Y)0.28-1.00

Profitability

ROE (TTM)

D-Wave Quantum (QBTS) reports a negative ROE of -27.99%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Microsoft (MSFT) reports 34.22%, ranking against industry peers normally.

MSFT

Software & Services industry group

34.22%

Max
53.85%
MSFT
34.22%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%

QBTS

Software & Services industry group

-27.99%

Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
QBTS
-27.99%
Min
-50.52%
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Microsoft (MSFT) at 41.17% retains a top-quartile share of revenue as profit, ahead of D-Wave Quantum (QBTS) at 0.00%, which keeps about the industry-typical share.

MSFT

Software & Services industry group

41.17%

MSFT
41.17%
Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%

QBTS

Software & Services industry group

0.00%

Max
41.17%
Q3
15.28%
Median
4.63%
QBTS
0.00%
Q1
-5.42%
Min
-33.17%
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

D-Wave Quantum (QBTS) reports a negative operating margin of -1,732.06%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Microsoft (MSFT) reports 49.76%, ranking against industry peers normally.

MSFT

Software & Services industry group

49.76%

MSFT
49.76%
Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%

QBTS

Software & Services industry group

-1,732.06%

Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
QBTS
-1,732.06%
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and D-Wave Quantum (QBTS)
MetricMSFTQBTS
ROE (TTM)34.22%-27.99%
ROA (TTM)14.41%-10.65%
Net Margin (TTM)41.17%0.00%
Operating Margin (TTM)49.76%-1,732.06%
Gross Margin (TTM)67.66%64.19%

Growth

Revenue Growth

D-Wave Quantum (QBTS) at 178.54% clears its industry range for revenue growth, far stronger top-line momentum than Microsoft (MSFT) at 17.79%, which is closer to a typical peer reading.

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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Microsoft (MSFT) reports EPS growth of 31.60%, ranked against its industry; D-Wave Quantum (QBTS) has no EPS growth figure this period.

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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microsoft (MSFT) and D-Wave Quantum (QBTS)
MetricMSFTQBTS
Revenue Growth (YoY)17.79%178.54%
Revenue Growth (3Y CAGR)16.12%50.78%
EPS Growth (YoY)31.60%--
EPS Growth (3Y CAGR)22.86%--

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical mid-range, while D-Wave Quantum (QBTS) at 20.55 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

MSFT

Software & Services industry group

1.23

Max
5.11
Q3
2.77
Median
1.67
MSFT
1.23
Q1
1.01
Min
0.03

QBTS

Software & Services industry group

20.55

QBTS
20.55
Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

D-Wave Quantum (QBTS) at 0.04 keeps leverage in the lower industry quartile, while Microsoft (MSFT) at 0.28 runs a more typical debt-to-equity mix.

MSFT

Software & Services industry group

0.28

Max
2.52
Q3
1.13
Median
0.40
MSFT
0.28
Q1
0.07
Min
0.00

QBTS

Software & Services industry group

0.04

Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
QBTS
0.04
Min
0.00
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Microsoft (MSFT) and D-Wave Quantum (QBTS)
MetricMSFTQBTS
Current Ratio (MRQ)1.2320.55
Debt / Equity (MRQ)0.280.04
Net Debt / EBITDA0.34--

Dividends

Dividend Yield (TTM)

D-Wave Quantum (QBTS) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a yield of 0.69%, ranking against industry peers normally.

MSFT

Software & Services industry group

0.69%

MSFT
0.69%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

QBTS

Software & Services industry group

0.00%

QBTS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

D-Wave Quantum (QBTS) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a payout of 19.00%, ranking against industry peers normally.

MSFT

Software & Services industry group

19.00%

MSFT
19.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

QBTS

Software & Services industry group

0.00%

QBTS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and D-Wave Quantum (QBTS)
MetricMSFTQBTS
Dividend Yield (TTM)0.69%0.00%
Dividend Payout Ratio (TTM)19.00%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Microsoft (MSFT) trades at 27.69 times trailing earnings, ranked against its peers, while D-Wave Quantum (QBTS) has no P/E ratio this period.

MSFT

Software & Services industry group

27.69

Max
112.94
Q3
60.32
Median
32.91
MSFT
27.69
Q1
18.77
Min
6.69

QBTS

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
QBTS
--
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): QBTS does not report P/E ratio, so it has no value marker; MSFT is benchmarked against the Software & Services industry group.

P/S Ratio (TTM)

Both look expensive on sales: Microsoft (MSFT) at 11.37 sits in the upper P/S ratio quartile, and D-Wave Quantum (QBTS) at 326.31 prices even higher, above its industry range.

MSFT

Software & Services industry group

11.37

Max
17.91
MSFT
11.37
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02

QBTS

Software & Services industry group

326.31

QBTS
326.31
Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Microsoft (MSFT) at 8.38 and D-Wave Quantum (QBTS) at 3.67 are valued close to their industries’ norm against book — neither stands out from peers.

MSFT

Software & Services industry group

8.38

Max
16.63
Q3
8.50
MSFT
8.38
Median
4.30
Q1
1.92
Min
-3.90

QBTS

Software & Services industry group

3.67

Max
16.63
Q3
8.50
Median
4.30
QBTS
3.67
Q1
1.92
Min
-3.90
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Microsoft (MSFT) vs. D-Wave Quantum (QBTS): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and D-Wave Quantum (QBTS)
MetricMSFTQBTS
P/E Ratio (TTM)27.69--
P/S Ratio (TTM)11.37326.31
P/B Ratio (MRQ)8.383.67
Free Cash Flow Yield (TTM)0.08%-1.81%