IonQ vs. Quantum Computing, Inc.: A Look at Two Leading Quantum Computing Stocks

Are IonQ and Quantum Computing, Inc. two of the top players in quantum computing? As we look ahead to 2025 and beyond, it's important to explore these companies and their potential in the rapidly growing quantum computing industry.

Quantum computing has become a trending subject among investors. In recent months, several stocks focused purely on this technology have shown remarkable growth. Investors are excited about the potential of quantum computers to tackle complex challenges quickly and effectively.

IonQ (IONQ) has seen impressive gains, with its stock rising 484% in just six months as of December 26. However, it still falls short compared to its smaller competitor, Quantum Computing, Inc. (QUBT), which has experienced a staggering 2,735% increase.

Can Quantum Computing sustain its growth? Will IonQ surpass its rival by 2025? Here are essential factors to consider before investing in this exciting sector.

Metric	Quantum Computing	IonQ
Market Cap	$2.4 billion	$10.2 billion
Revenue (TTM)	$390,000	$37.5 million
Net Profit Margin (TTM)	(6,159%)	(457.9%)
Free Cash Flow (TTM)	($20.5 million)	($120.4 million)
Cash and Short-Term Investments	$3.06 million	$301.8 million

Data collected from Finviz and YCharts on December 26, 2024. TTM = trailing twelve months.

Examining Financial Performance

The financial situations of IonQ and Quantum Computing show some similarities. Both companies have market valuations in the billions, despite their low revenues and significant losses.

Neither company currently aims for profitability. They operate as development-stage businesses focused on creating new technology that may lead to future profits.

IonQ has been transparent about its financial journey, stating in its regulatory filings prior to going public in 2021 that it anticipates ongoing net losses until it achieves considerable production of quantum computers, expected at the earliest in 2025.

Quantum Computing has similarly highlighted its struggles, indicating in a 2020 report that it faced negative cash flows and doubts regarding its viability.

The history of development-stage companies on Wall Street is filled with unfortunate outcomes where businesses have failed to meet high expectations. IonQ and Quantum Computing acknowledge the real potential for financial struggles ahead.

Investors should recognize the significant risks associated with buying stocks in this volatile sector. Even for those who are comfortable taking risks, it’s wise to limit investments in these companies.

What Sets These Companies Apart

IonQ is recognized as a key player in manufacturing quantum computing systems. Its clientele includes various U.S. military branches, the automotive company Hyundai, and the industrial firm Caterpillar. Additionally, customers can access IonQ's hardware through major cloud platforms like Amazon, Microsoft, and Alphabet.

The IonQ Forte system debuted about a year ago. With its trapped ion technology, it offers 32 qubits of power. While this allows for basic calculations, the error rates remain high. Priced around $13 million, the Forte system currently lacks practical applications for businesses.

Quantum Computing began with a focus on providing software for existing quantum hardware. After merging with a hardware research company, it is now exploring opportunities in hardware production.

However, Quantum Computing hasn't yet shipped any hardware. Its third-quarter report mentioned several partnerships and research initiatives, with hopes for system sales beginning in 2025.

Investing in Quantum Computing Stocks

Given the landscape, it may be premature to declare long-term winners in the risky realm of quantum computing. A cautious approach may involve investing in larger tech firms that are also developing quantum systems. These established companies have the resources to manage the unpredictable challenges associated with research and innovation.

When selecting a winner between IonQ and Quantum Computing, the choice appears evident. IonQ has secured long-term contracts and delivered systems to customers. Furthermore, it has ample cash reserves to sustain its operations without needing to secure additional funding soon. In contrast, Quantum Computing lacks that financial cushion.

Therefore, IonQ may be the more appealing option compared to Quantum Computing.

Quantum, Stocks, Investing