Both IonQ (IONQ 2.10%) and D-Wave Quantum (QBTS 4.76%) are artificial intelligence (AI) stocks trying to stand out in the quantum computing field. Despite their relatively smaller sizes, both companies have made commercially related breakthroughs in quantum computing, making it worthwhile to compare the two companies.
Investors should also keep in mind that they seek to carve a niche in their fields from quantum computing giants such as Google parent Alphabet or IBM. As they work to stand out in their potentially lucrative but competitive industries, one may stand out as a more suitable holding for most investors.
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The case for IonQ
IonQ calls itself the "world's leading quantum computing company" and appears to back up that claim with breakthroughs such as electronic qubit control systems. IonQ achieved record-breaking "two-qubit gate fidelity," helping it run quantum algorithms with higher complexity while limiting error rates. High error rates have plagued this industry, so such improvements can translate into a competitive advantage.
Moreover, quantum computing has begun as more of a research tool. However, IonQ's hardware has become more prevalent in working to solve problems for companies. To that end, companies ranging from Microsoft to AstraZeneca work with IonQ.
Financially speaking, IonQ continues to run net losses, though that is not unique to other smaller AI-related companies. Not surprisingly, it also reported a negative free cash flow of $216 million in the first nine months of 2025.
To that end, it diluted its shares recently, taking the number of shares higher by 59% over the last year. That likely led to both increases and declines for IonQ stock, resulting in gains of around 10% over the previous 12 months.
NYSE: IONQ
Key Data Points
Fortunately, with close to $1.1 billion in liquidity, the company can maintain its current financial pace for a few years without having to take on more debt or issue more shares to stay in business, and that may give IonQ bulls some relief.
It is hard to evaluate IonQ through valuation metrics. As a money-losing company, it has no P/E ratio, and its price-to-sales (P/S) ratio of around 130 means its sales multiple bears no relation to its revenue levels. Nonetheless, its price-to-book ratio of 7 could give investors an excuse to buy the stock at current levels.
Why investors might consider D-Wave Quantum
Investors may also notice that similar attributes and challenges apply to D-Wave Quantum. The company calls itself the "practical quantum computing company," and true to that name, it focuses on leveraging quantum technology to help enhance generative AI and other applications.
D-Wave Quantum stood out by making breakthroughs in multiplexing, which enhances chip communication, and bump bonding, a process that stacks a control chip onto a quantum processing qubit chip.
These advancements foster the ability to run applications while keeping bits at a cool temperature, enhancing their functionality. Such breakthroughs have helped it secure partnerships with companies like Volkswagen and Mastercard, confirming the commercial appeal of its offerings.
Still, like IonQ, D-Wave Quantum is far from turning a profit. This means it depends heavily on outside capital, and to that end, it reported $56 million in negative free cash flow in the first nine months of 2025. Also, the company raised its outstanding share count by 20% over the last year.
Fortunately, the stock is up by nearly 400% over the last year despite the share dilution. Also, considering its $836 million in liquidity and $56 million in negative free cash flow for the first three quarters of 2025, D-Wave Quantum is unlikely to run out of money anytime soon.
NYSE: QBTS
Key Data Points
Moreover, like IonQ, its valuation metrics seem to bear no relation to its business, especially considering its P/S ratio of just above 275. Nonetheless, D-Wave Quantum currently sells at a price-to-book ratio of 12. Although that is significantly higher than IonQ, it may still be low enough to attract further investor interest in the near term.
Should investors choose IonQ or D-Wave Quantum
Ultimately, both stocks are highly speculative, meaning only the most risk-tolerant investors should consider either. Additionally, even if one invests in IonQ or D-Wave Quantum, they should probably avoid taking out huge positions.
However, if choosing between the two, investors should probably lean toward IonQ. Admittedly, D-Wave Quantum stock is up significantly more over the last year, and it has diluted its stock less than IonQ to raise funds.
Still, the nearly 400% gains over the last year may signal that D-Wave Quantum is done moving higher for a while. In contrast, IonQ offers a much lower valuation. That factor and the company's quantum computing advancements could make it a more attractive choice for investing speculative funds.
