PANW vs. QBTS: A Head-to-Head Stock Comparison

Updated on August 23, 2025

Here’s a clear look at PANW and QBTS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	PANW	QBTS
Company Name	Palo Alto Networks, Inc.	D-Wave Quantum Inc.
Country	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry	Software	Software
Market Capitalization	123.19 billion USD	5.15 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	July 20, 2012	December 11, 2020
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of PANW and QBTS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

PANW vs. QBTS: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	PANW	QBTS
5-Day Price Return	6.27%	-17.16%
13-Week Price Return	-5.08%	14.52%
26-Week Price Return	-8.64%	131.69%
52-Week Price Return	7.43%	1,525.30%
Month-to-Date Return	6.24%	-12.39%
Year-to-Date Return	1.36%	79.29%
10-Day Avg. Volume	13.58M	43.94M
3-Month Avg. Volume	6.85M	59.32M
3-Month Volatility	36.24%	107.52%
Beta	0.97	1.40

Profitability

Return on Equity (TTM)

PANW

16.59%

Software Industry

Max: 59.01%
Q3: 21.98%
Median: 7.15%
Q1: -11.12%
Min: -51.24%

PANW’s Return on Equity of 16.59% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

QBTS

Software Industry

Max: 59.01%
Q3: 21.98%
Median: 7.15%
Q1: -11.12%
Min: -51.24%

Return on Equity data for QBTS is currently unavailable.

PANW vs. QBTS: A comparison of their Return on Equity (TTM) against the Software industry benchmark.

Net Profit Margin (TTM)

PANW

12.30%

Software Industry

Max: 48.14%
Q3: 18.23%
Median: 5.60%
Q1: -9.22%
Min: -49.36%

PANW’s Net Profit Margin of 12.30% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

QBTS

-1,263.92%

Software Industry

Max: 48.14%
Q3: 18.23%
Median: 5.60%
Q1: -9.22%
Min: -49.36%

QBTS has a negative Net Profit Margin of -1,263.92%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

PANW vs. QBTS: A comparison of their Net Profit Margin (TTM) against the Software industry benchmark.

Operating Profit Margin (TTM)

PANW

13.48%

Software Industry

Max: 57.34%
Q3: 20.60%
Median: 7.84%
Q1: -8.72%
Min: -51.37%

PANW’s Operating Profit Margin of 13.48% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

QBTS

-353.14%

Software Industry

Max: 57.34%
Q3: 20.60%
Median: 7.84%
Q1: -8.72%
Min: -51.37%

QBTS has a negative Operating Profit Margin of -353.14%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

PANW vs. QBTS: A comparison of their Operating Profit Margin (TTM) against the Software industry benchmark.

Profitability at a Glance

Symbol	PANW	QBTS
Return on Equity (TTM)	16.59%	--
Return on Assets (TTM)	5.22%	-82.90%
Net Profit Margin (TTM)	12.30%	-1,263.92%
Operating Profit Margin (TTM)	13.48%	-353.14%
Gross Profit Margin (TTM)	73.41%	82.46%

Financial Strength

Current Ratio (MRQ)

PANW

0.94

Software Industry

Max: 3.83
Q3: 2.31
Median: 1.45
Q1: 1.03
Min: 0.24

PANW’s Current Ratio of 0.94 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

QBTS

20.73

Software Industry

Max: 3.83
Q3: 2.31
Median: 1.45
Q1: 1.03
Min: 0.24

QBTS’s Current Ratio of 20.73 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

PANW vs. QBTS: A comparison of their Current Ratio (MRQ) against the Software industry benchmark.

Debt-to-Equity Ratio (MRQ)

PANW

0.00

Software Industry

Max: 2.14
Q3: 0.90
Median: 0.29
Q1: 0.00
Min: 0.00

PANW’s Debt-to-Equity Ratio of 0.00 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

QBTS

0.15

Software Industry

Max: 2.14
Q3: 0.90
Median: 0.29
Q1: 0.00
Min: 0.00

QBTS’s Debt-to-Equity Ratio of 0.15 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

PANW vs. QBTS: A comparison of their Debt-to-Equity Ratio (MRQ) against the Software industry benchmark.

Interest Coverage Ratio (TTM)

PANW

532.90

Software Industry

Max: 67.02
Q3: 19.86
Median: 0.70
Q1: -12.50
Min: -53.00

With an Interest Coverage Ratio of 532.90, PANW demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.

QBTS

-46.22

Software Industry

Max: 67.02
Q3: 19.86
Median: 0.70
Q1: -12.50
Min: -53.00

QBTS has a negative Interest Coverage Ratio of -46.22. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

PANW vs. QBTS: A comparison of their Interest Coverage Ratio (TTM) against the Software industry benchmark.

Financial Strength at a Glance

Symbol	PANW	QBTS
Current Ratio (MRQ)	0.94	20.73
Quick Ratio (MRQ)	0.88	20.44
Debt-to-Equity Ratio (MRQ)	0.00	0.15
Interest Coverage Ratio (TTM)	532.90	-46.22

Growth

Revenue Growth

PANW vs. QBTS: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

PANW vs. QBTS: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

PANW

0.00%

Software Industry

Max: 0.08%
Q3: 0.03%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PANW currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

QBTS

0.00%

Software Industry

Max: 0.08%
Q3: 0.03%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

QBTS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

PANW vs. QBTS: A comparison of their Dividend Yield (TTM) against the Software industry benchmark.

Dividend Payout Ratio (TTM)

PANW

0.00%

Software Industry

Max: 1.32%
Q3: 0.53%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PANW has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

QBTS

0.00%

Software Industry

Max: 1.32%
Q3: 0.53%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

QBTS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

PANW vs. QBTS: A comparison of their Dividend Payout Ratio (TTM) against the Software industry benchmark.

Dividend at a Glance

Symbol	PANW	QBTS
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

PANW

106.88

Software Industry

Max: 149.35
Q3: 100.21
Median: 47.97
Q1: 26.77
Min: 11.68

A P/E Ratio of 106.88 places PANW in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

QBTS

Software Industry

Max: 149.35
Q3: 100.21
Median: 47.97
Q1: 26.77
Min: 11.68

P/E Ratio data for QBTS is currently unavailable.

PANW vs. QBTS: A comparison of their Price-to-Earnings Ratio (TTM) against the Software industry benchmark.

Price-to-Sales Ratio (TTM)

PANW

13.14

Software Industry

Max: 25.24
Q3: 13.52
Median: 8.15
Q1: 4.87
Min: 0.98

PANW’s P/S Ratio of 13.14 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

QBTS

231.24

Software Industry

Max: 25.24
Q3: 13.52
Median: 8.15
Q1: 4.87
Min: 0.98

With a P/S Ratio of 231.24, QBTS trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

PANW vs. QBTS: A comparison of their Price-to-Sales Ratio (TTM) against the Software industry benchmark.

Price-to-Book Ratio (MRQ)

PANW

14.79

Software Industry

Max: 30.95
Q3: 14.91
Median: 7.75
Q1: 3.60
Min: 0.38

PANW’s P/B Ratio of 14.79 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

QBTS

10.68

Software Industry

Max: 30.95
Q3: 14.91
Median: 7.75
Q1: 3.60
Min: 0.38

QBTS’s P/B Ratio of 10.68 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

PANW vs. QBTS: A comparison of their Price-to-Book Ratio (MRQ) against the Software industry benchmark.

Valuation at a Glance

Symbol	PANW	QBTS
Price-to-Earnings Ratio (TTM)	106.88	--
Price-to-Sales Ratio (TTM)	13.14	231.24
Price-to-Book Ratio (MRQ)	14.79	10.68
Price-to-Free Cash Flow Ratio (TTM)	40.39	--