NetApp (NASDAQ:NTAP – Get Free Report) and IonQ (NYSE:IONQ – Get Free Report) are both large-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.
Valuation and Earnings
This table compares NetApp and IonQ”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NetApp | $6.92 billion | 6.09 | $1.28 billion | $7.09 | 30.28 |
| IonQ | $130.02 million | 100.49 | -$510.38 million | ($4.66) | -7.36 |
NetApp has higher revenue and earnings than IonQ. IonQ is trading at a lower price-to-earnings ratio than NetApp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for NetApp and IonQ, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NetApp | 0 | 11 | 8 | 1 | 2.50 |
| IonQ | 1 | 4 | 10 | 0 | 2.60 |
NetApp presently has a consensus target price of $213.20, suggesting a potential downside of 0.70%. IonQ has a consensus target price of $63.33, suggesting a potential upside of 84.68%. Given IonQ’s stronger consensus rating and higher probable upside, analysts clearly believe IonQ is more favorable than NetApp.
Volatility and Risk
NetApp has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, IonQ has a beta of 3.36, indicating that its stock price is 236% more volatile than the S&P 500.
Profitability
This table compares NetApp and IonQ’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NetApp | 19.18% | 119.13% | 14.39% |
| IonQ | -553.27% | -22.29% | -13.20% |
Institutional & Insider Ownership
92.2% of NetApp shares are held by institutional investors. Comparatively, 41.4% of IonQ shares are held by institutional investors. 0.4% of NetApp shares are held by company insiders. Comparatively, 0.6% of IonQ shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
NetApp beats IonQ on 8 of the 14 factors compared between the two stocks.
About NetApp
NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID. In addition, it provides cloud storage and data services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, NetApp Cloud Volumes Service for Google Cloud, and cloud operations services, such as NetApp Cloud Insights, Spot by NetApp, and Instaclustr. Further, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Additionally, it provides assessment, design, implementation, and migration services. The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video postproduction, and markets through a direct sales force and an ecosystem of partners. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.
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.
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