Critical Contrast: IonQ (NYSE:IONQ) & Acer (OTCMKTS:ACEYY)

IonQ (NYSE:IONQ) and Acer (OTCMKTS:ACEYY) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Earnings & Valuation

This table compares IonQ and Acer’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IonQ	$22.04 million	77.90	-$157.77 million	($0.78)	-10.57
Acer	N/A	N/A	N/A	($11.67)	-0.65

Acer has lower revenue, but higher earnings than IonQ. IonQ is trading at a lower price-to-earnings ratio than Acer, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

41.4% of IonQ shares are held by institutional investors. 13.0% of IonQ shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares IonQ and Acer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IonQ	-715.77%	-28.27%	-25.48%
Acer	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for IonQ and Acer, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IonQ	0	3	3	0	2.50
Acer	0	2	0	0	2.00

IonQ currently has a consensus target price of $16.50, indicating a potential upside of 100.12%. Given IonQ’s stronger consensus rating and higher probable upside, research analysts plainly believe IonQ is more favorable than Acer.

Summary

IonQ beats Acer on 7 of the 11 factors compared between the two stocks.

About IonQ

IonQ, Inc. engages in the development of general-purpose quantum computing systems in the United States. It sells access to quantum computers of various qubit capacities. The company makes access to its quantum computers through cloud platforms, such as Amazon Web Services (AWS) Amazon Braket, Microsoft's Azure Quantum, and Google's Cloud Marketplace, as well as through its cloud service. It also provides contracts associated with the design, development, and construction of specialized quantum computing hardware systems; maintenance and support services; and consulting services related to co-developing algorithms on quantum computing systems. The company was founded in 2015 and is headquartered in College Park, Maryland.

About Acer

Acer Incorporated researches, designs, markets, and services personal computers (PCs), information technology (IT) products, and tablet products in the United States, Mainland China, Taiwan, and internationally. The company offers notebook and desktop PCs; LCD monitors; projectors; gaming and esports platform; gadgets; servers; cloud and E-business and services; and commercial and digital signage solutions, cyber security and datacenter, mobility, home appliances, beverages, and AI media. It also provides electronic information, insurance captive, cloud technology, system development and integration; intelligent transportation and electronic ticketing programs and services; and investment funds. In addition, the company repairs and maintains IT products; researches, designs, and develops Internet of Things platform; sells communication products, computer, apparatus system, and peripheral equipment; develops Internet of Beings and cloud technology; and integrates cloud technology, software, and hardware. Further, it researches, develops, and sells batteries and smart bicycle speedometers; sells commercial and cloud application software and services; and designs, develops, and sells computer software and hardware, as well as provides B2B virtual reality and advisory related services. Additionally, the company engages in solar optronics business; trading and distribution of synthetic and natural rubber, plastic resins, and related fillers; agency of video game console and peripherals; hotel management services; property management business; operates and maintains eSports platform; and human resources and project service, as well as provides intelligent medical examination and data interpretation analysis, medical big data, and health management and related information exchange services. It also sells health supplements and manufactures lithium batteries. Acer Incorporated was incorporated in 1976 and is headquartered in New Taipei City, Taiwan.