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

As we head into 2025, the question looms: Can IonQ outperform Quantum Computing, Inc.? Investors are increasingly focused on these two leading companies in the rapidly expanding field of quantum computing.

Quantum computing has become a trending topic among investors, with many seeing it as a revolutionary advancement capable of solving complex problems far quicker than traditional computers. This surge of interest has translated into impressive stock performances.

As of late December 2024, IonQ's stock value surged by 484% in just six months. However, this remarkable increase only placed IonQ at 16th in a list of top-performing stocks, far behind Quantum Computing, Inc., which saw a staggering gain of 2,735% during the same period.

So, what’s next for these two companies? Can Quantum Computing continue its momentum, or will IonQ turn the tide and establish superior performance in 2025?

Metric	Quantum Computing, Inc.	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

These metrics reflect similar challenges for both companies, which are valued in the billions despite minimal revenue and significant losses. Neither company is currently pursuing profitability; they are in the development stage, aiming to create advanced technologies that may lead to future profit. According to IonQ's disclosures from its initial public offering in 2021, the company acknowledged that it anticipates continuous operating losses until it begins significant production, which is expected no earlier than 2025.

Similarly, Quantum Computing expressed concerns in 2020 regarding its ongoing financial viability, citing negative cash flows and recurring losses as factors that cast doubt on its ability to continue operating.

Investors should be aware of the considerable risks associated with investing in these companies. Both IonQ and Quantum Computing may struggle to achieve their promised potential, highlighting the unpredictability of the quantum computing market.

Distinct Features of IonQ and Quantum Computing

IonQ stands out as a chief player in manufacturing quantum computing systems. Its client roster includes branches of the U.S. military, Hyundai, and Caterpillar. Furthermore, IonQ offers access to its hardware via mainstream cloud platforms like Amazon, Microsoft, and Alphabet.

Last year, IonQ launched its Forte system, featuring a trapped ion architecture equipped with 32 qubits. While this system can handle foundational calculations, it still experiences high error rates. Despite its estimated cost of $13 million, it remains impractical for real-world applications.

On the other hand, Quantum Computing began by focusing on software and algorithms tailored to run on existing quantum hardware from other companies. The company has since merged with a quantum hardware developer and is now exploring opportunities to sell its computing systems as well, although it has yet to deliver any hardware. Its recent reports show promising partnerships and research collaborations with an eye toward system sales in 2025.

Investing in Quantum Computing Stocks

Given the current landscape, identifying long-term winners in quantum computing remains challenging. A prudent strategy might involve investing in larger tech firms that are also developing quantum capabilities, since they possess the resources necessary to navigate the risks tied to groundbreaking research projects.

If forced to choose between IonQ and Quantum Computing, IonQ appears to have the upper hand. It has established itself with several long-term contracts and successfully delivered systems to real customers. IonQ's financial position also looks more stable, with sufficient cash reserves to operate without the immediate need for additional fundraising. In contrast, Quantum Computing's financial situation is more precarious.

Ultimately, IonQ seems to be the safer investment compared to Quantum Computing, which presents a higher risk to investors.

Quantum, Investing, Stocks