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Better Quantum Computing Stock: D-Wave Quantum vs. Quantum Computing Inc.
Key Points Quantum computing offer an intriguing opportunity given its potential to revolutionize many industries. D-Wave Quantum and Quantum Computing Inc. are early-stage businesses with promising innovations. However, both companies are seeing volatile sales across quarters, and neither is profitable. 10 stocks we like better than D-Wave Quantum › The quantum computing sector offers an exciting new area to invest in. Quantum machines can perform sophisticated calculations beyond the capabilities of current classical computers. This tech could transform industries such as medicine and artificial intelligence. But among the bevy of businesses in the field, which are worthwhile long-term investments as the nascent industry grows? Two to consider are D-Wave Quantum (NYSE: QBTS) and Quantum Computing Inc. (NASDAQ: QUBT), which also refers to itself as QCi. Between D-Wave and QCi, one looks like the better quantum computing stock. Read on for an exploration of both businesses to understand which one and why. Untangling D-Wave Quantum's business performance D-Wave produces income primarily through subscriptions to its quantum systems via the cloud and professional services to support customers in the use of its technology. In 2025, D-Wave's sales have been on a roller coaster. It generated $15 million in the first quarter after selling one of its quantum computers. In Q2, revenue was $3.1 million, a 42% increase from 2024's $2.2 million as the company picked up $1 million to upgrade the device sold in the first quarter. This sales volatility could continue for some time as D-Wave grows its business. An encouraging sign is 92% year-over-year growth in its Q2 bookings to $1.3 million. Bookings represent customer orders received in the quarter that are expected to produce revenue when the orders are fulfilled. However, D-Wave isn't turning a profit. Its Q2 operating loss of $26.5 million was a 42% increase from the previous year. That's a concerning trend given its Q2 revenue of just $3.1 million. Fortunately, D-Wave has stockpiled a record high $819.3 million in cash and equivalents on its balance sheet. It exited Q2 with total assets of $843.6 million versus total liabilities of $149.3 million. This enables the company to maintain operations in the short term on its path to revenue growth. Quantum Computing Inc.'s budding business QCi uses light particles, called photons, to perform calculations in its quantum computer chips. It sells these chips, other hardware, and professional services to generate revenue. The company is in an early stage of its business lifecycle with sales coming primarily from research grants and proof-of-concept projects. As a result, its sales are small, and prone to substantial swings. For example, in 2024, QCi generated revenue of $373,000, a 4% year-over-year increase. But through the first half of 2025, sales plunged 52% to $100,000. QCi's technology has the potential to generate long-term revenue growth. Photons can be used in a wide range of light sensing, imaging, and other optical applications. Nevertheless, until QCi can gain traction with a larger group of customers, sales will continue to struggle. And that does not bode well for its business viability, because the company is not profitable. The company exited Q2 with an operating loss of $10.2 million against revenue of $61,000 as research and development costs more than doubled year over year to $6 million. QCi's saving grace is that, like D-Wave, it amassed a large war chest to fund operations in the short term. Q2 total assets were $426.1 million with cash and equivalents of $348.8 million. Total liabilities in the quarter were $30.1 million. Deciding between D-Wave Quantum and Quantum Computing Inc. In choosing between D-Wave Quantum or QCi, an important consideration is share price valuation. Since both are not profitable, the way to get at this is using the price-to-sales (P/S) ratio, which measures how much investors are willing to pay for every dollar of revenue generated over the trailing 12 months. The chart shows QCi's P/S multiple is far above D-Wave's, and the disparity is so great, QCi shares look overpriced. Consequently, D-Wave stock is the better value. This, combined with promising sales and bookings growth, makes D-Wave a more attractive investment than its rival. At QCi's current phase of development, it's a highly speculative stock given the low revenue, high costs, and limited commercial sales. This doesn't mean D-Wave shares are a bargain, since its sales multiple is quite high as well. Another factor to consider is that the quantum computing industry is in its early stages. Quantum computers are prone to calculation errors, because the atomic particles in these machines are sensitive to the slightest environmental disturbances, such as a minor temperature change. So while D-Wave is the better choice versus QCi, any investment in a pure-play quantum computer company is a risk. And it could take years before a scalable quantum device is possible. Some estimates predict that won't happen until 2040. Given these factors, only investors with a high risk tolerance should consider investing in D-Wave. Should you invest $1,000 in D-Wave Quantum right now? Before you buy stock in D-Wave Quantum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and D-Wave Quantum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,466!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,633!* Now, it's worth noting Stock Advisor's total average return is 1,077% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 18, 2025 Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Better Quantum Computing Stock: D-Wave Quantum vs. Quantum Computing Inc. was originally published by The Motley Fool
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FlexGen completes Powin assets acquisition, enhancing storage support
Energy storage technology provider FlexGen Power Systems has closed the acquisition of assets and intellectual property (IP) from Powin. The move positions FlexGen as a major supporter of more than 25 gigawatt hours (GWh) of battery energy storage systems (BESS) across more than 200 sites in ten countries with its software and services. In early August 2025, the company received approval from the US Bankruptcy Court for the District of New Jersey for the acquisition. The acquisition enhances FlexGen's international standing within grid-scale storage solutions. It comes at a crucial time when energy infrastructures globally face increased demand for reliable performance. FlexGen CEO Kelcy Pegler stated: 'Batteries are critical to meeting the world's growing demand for affordable, reliable electricity. This is more than an acquisition – it's a reflection of FlexGen's commitment to immediate continuity and the future of grid-scale storage. 'FlexGen's proven operational excellence, hardware-agnostic software and commitment to innovation uniquely position us to maximise the value of these Powin assets today, while enhancing the reliability and performance of energy grids worldwide for years to come.' FlexGen has also strengthened its workforce by integrating former Powin team members. This ensures that customers experience seamless service continuity and retain critical technical knowledge for the supported systems. Existing clients of Powin will continue to receive consistent support without interruption, and have the opportunity to improve system uptime and longevity by transitioning to FlexGen's proprietary HybridOS platform alongside their comprehensive lifecycle services. Powin CEO Brian Kane stated: "Powin is proud of the technology and projects we've delivered. The goal was to ensure that those systems and customers are supported by an industry leader that provides the support and services enabling reliable, long-term operation. 'Based on their experience and reputation, and having collaborated with their team in recent days, we have full confidence that FlexGen is that leader.' In April 2025, Trina Storage partnered FlexGen to implement a 371 megawatt hour energy storage system in the US state of Texas. The project, developed by SMT Energy, showcases Trina Storage's cutting-edge Elementa 2 solution. "FlexGen completes Powin assets acquisition, enhancing storage support" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Copart's Global Reach: How Top Market Presence Fuels Its Durable Duopoly
This article first appeared on GuruFocus. When I look at a business, I don't start by pulling up its stock chart. I start with a simpler, sharper question: If I could buy the whole thing at today's price and hold it for the next decade, would I? It's a filter Warren Buffett (Trades, Portfolio) has applied for decades and it forces you to think like an owner, not a trader. On paper, Copart (NASDAQ:CPRT) is an auto salvage auction company. That label undersells what's actually happening here. Beneath the surface, this is a platform business wrapped around a hard-asset network, with economics that get better the bigger it gets. It's the kind of operation that can turn every extra dollar of invested capital into an outsized amount of profit. The question isn't whether Copart is a high-quality enterprise the numbers speak for themselves but whether today's price leaves room for an investor to compound wealth without overpaying for the privilege. Copart's business is straightforward on the surface: it connects sellers of damaged, totaled, or otherwise unwanted vehicles with buyers around the world. Most sellers are large insurance companies, but rental car fleets, finance companies, and dealerships also use the platform. Buyers range from small repair shops and dismantlers to exporters shipping cars and parts overseas. Copart's system takes care of everything towing the vehicle from the accident site, storing it in one of its yards, photographing and listing it on its proprietary online auction platform, and managing the sale, paperwork, and compliance requirements. That's the visible process. The real value creation runs deeper. For sellers, Copart eliminates the hassle of dealing with non-drivable vehicles, speeds up recovery times, and often delivers higher resale values thanks to a global bidding audience. For buyers, it's a dependable, constantly refreshed source of inventory, accessible from anywhere. Revenue comes primarily from service fees on both sides, with ancillary income from storage and transportation. Once the infrastructure is in place, the incremental cost of processing one more car is minimal which is why margins expand as volumes grow. There are no messy segment splits or unrelated sidelines. It's one integrated model, deployed across more than 200 locations with over 10,000 acres of vehicle inventory. That simplicity is part of the moat there's no confusion about what the business does or how it makes money. Copart operates in one of the rare industries where the structure tilts heavily in favor of the incumbent. In the U.S., Copart and IAA (RB Global) together control roughly 80% of the salvage auction market, concentrating pricing power and scale efficiencies in just two networksCopart typically capturing the lion's share of incremental economics. In the U.K., the CMA puts Copart's insurance-customer share at 6070%, over three times the next largest competitora lead built on years of owned-yard infrastructure and seamless process integration. Internationally, the growth runway is substantial, with strong potential based on market trends. Germany's online salvage market is worth about $950 million in 2024 with a projected 21% CAGR through 2030. Brazil sits near $480 million with mid-teens growth, while India, at roughly $230 million, is expanding at an estimated 23% CAGR. Taken together, Copart's entrenched U.S. base and U.K. dominance already secure the bulk of the developed-world salvage auction value pool, while scalable expansion into Germany, Brazil, and India could add over $1.6 billion in addressable market within five yearsat growth rates far exceeding its mature U.S. segment. With RB Global still focused on stabilizing IAA's U.S. base, Copart has a clear first-mover window to entrench itself in these high-growth markets and deepen its network-effect advantage. Copart's scale gives it an even clearer edge. Large insurance companies, the core sellers, have some bargaining power, but switching platforms would mean re-engineering their claims processes and risking lower recovery values. Buyers, by contrast, are many and scattered dismantlers, exporters, repair shops with little individual leverage. There's also no real substitute for Copart's model at scale. Insurers could try running their own auctions, but they'd lose the pricing power that comes from a global bidder base and the operational efficiency of a platform built for this purpose. And building a competitor is far from simple. It's not just a matter of launching software. You need a network of strategically placed storage yards, the zoning and environmental approvals to operate them, a transport fleet, and deep integration with insurer claims systems all of which take years to build. The moat is multi-layered. Network effects create a self-reinforcing loop: more sellers attract more buyers, higher realized prices attract more sellers, and the flywheel turns faster. Economies of scale mean yard and technology costs are spread over more transactions. Switching costs are high for insurers because Copart is embedded into their workflows. And then there's the real estate storage yards near major metros and ports that would be nearly impossible for a new entrant to secure today. Over the past decade, that moat hasn't just held; it's widened. International expansion has opened new buyer pools. Cross-border sales have increased. Disaster response capabilities have been strengthened, cementing relationships with insurers during their most critical moments. Each of these moves makes the platform more valuable and more irreplaceable over time. Copart's cultural DNA is still stamped with the fingerprints of founder Willis Johnson. What started as a single salvage yard in California has grown into a global operator with over 250 locationsand Johnson's imprint runs through every operational decision. He's not just a historical figurehead; as of the latest filings, he still owns over 55.8 million shares, a 5.79% stake that keeps him aligned with shareholders. His son-in-law, Jay Adair, took the helm for more than a decade, steering Copart through its most aggressive growth phase before stepping into the Executive Chairman role in 2024. Adair remains one of the largest shareholders, holding 30.6 million shares, or about 3.17% of the company. The CEO's chair now belongs to Jeff Liawa long-time insider who's worn the CFO and COO hats. Liaw knows where the operational levers are, understands the claims-handling nuances that make Copart indispensable to insurers, and has the financial discipline to keep the moat widening. Insider ownership is high enough to anchor decision-making to long-term compounding rather than short-term optics. The capital allocation record reflects the same discipline. Expansion has come through targeted bolt-on acquisitions that strengthen the network, coupled with steady investment in new yard capacity to support future volumes. When the stock has traded at sensible valuations, management has stepped in with share repurchases never chasing the market, only acting when the math works. There's no dividend. Every dollar of retained earnings is directed toward high-return growth or opportunistic buybacks. For a high-ROIC business with a long runway, that's exactly where you want the cash to go. From fiscal 2014 to 2024, revenue grew from roughly $1.16 billion to over $4.24 billion, a compound annual growth rate around 13.8%. Operating margins have expanded from 27% to 37%, and net margins have held at roughly 32%. Return on invested capital consistently sits around 20%, which tells you that each dollar put back into the business is creating real value for shareholders. Free cash flow in fiscal 2024 came in at roughly $962 million, about 22.7% of revenue. Because Copart owns much of its land, capital expenditures are skewed toward expansion rather than maintenance, making it more capital-light than it might appear. The balance sheet is a fortress: over $4.38 billion in cash & short-term investments, and negligible long-term debt. This combination of strong cash generation and financial flexibility gives Copart resilience in downturns and optionality in pursuing new opportunities. While Copart's long-term appeal lies in its ability to compound steadily, the next few years offer clear drivers for growth. International expansion is still in its early innings, with fragmented markets in Europe, Latin America, and the Middle East ripe for consolidation. Severe weather events hurricanes, floods, hailstorms unfortunately produce spikes in salvage volumes, and Copart's scale and infrastructure allow it to respond quickly and profitably. The rise of electric vehicles is another subtle tailwind: expensive battery packs mean more EVs are declared total losses after moderate accidents, increasing salvage supply. Finally, deeper integration into insurer claims systems reduces the risk of churn and increases transaction volumes. At roughly $47 a share, Copart changes hands at about 30 times trailing earnings and 22 times EBITDA, with a free cash flow yield near 2%. Over the past decade, free cash flow has compounded at roughly 18% annually. If we dial that back to 15% for the next ten years and assume a modest 3% terminal growth rate, discounting at 8% gets you to an enterprise value of about $48.1 billion roughly 18% above where the market prices it today. Copart has rarely looked cheap on traditional multiples. The market has long been willing to pay up for a business with this level of moat, growth consistency, and return profile. At current levels, you're not stealing it, but you're not overpaying in a way that makes future returns an uphill climb either. The margin of safety is slim if you measure it purely on entry price but when the underlying machine compounds at this rate, quality can do some of the heavy lifting. No business is without risk. Copart's customer base is concentrated a handful of large insurers account for a significant portion of volumes, and losing one would leave a mark. The supply of salvage vehicles is linked to accident rates, the proportion of insured vehicles on the road, and miles driven. Any sustained decline in those inputs would ripple through revenue. Regulatory changes whether in title processing, environmental compliance, or cross-border trade could shift the economics. Overseas growth adds its own variables: cultural nuances, legal complexity, and execution demands. And far out on the horizon, autonomous driving could chip away at accident frequency, though that threat remains more theoretical than imminent. These are genuine risks, but they're not existential. Copart's fortress balance sheet, deep integration with insurers, and self-reinforcing network effects give it both the resilience to absorb shocks and the flexibility to adapt. Buying Copart outright today would mean paying roughly $40.8 billion on an enterprise value basis for a company that dominates its domestic market, enjoys duopoly economics, and generates margins and returns on capital that most CEOs can only dream about. It comes with billions in cash, no meaningful debt, and a management team that thinks like owners. Buffett once said, It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Copart is firmly in the first camp. If you are searching for a 50-cent dollar, this isn't it. But if you're looking for a dollar that grows steadily in value each year and you're comfortable paying 80 or 90 cents for it, Copart deserves a place on your short list. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
