IONQ Holdings, Inc. (IONQ)vs UBER Holdings, Inc. (UBER)

Quick verdict

IONQ Holdings, Inc. (IONQ) and UBER Holdings, Inc. (UBER) appeal to different investors. On our six-factor framework, IONQ scores 3 and UBER scores 3. IONQ looks cheaper on the multiples that matter, while UBER grows faster and IONQ earns higher returns on capital. The two are evenly matched overall, so your priority — value, growth, income or safety — should decide it.

2-year relative performance

At-a-glance comparison

Business model and revenue mix

IONQ Holdings, Inc. operates in Internet Content & Information (Communication Services), while UBER Holdings, Inc. sits in Oil & Gas Integrated (Energy). The two operate in different sectors, so cyclicality and end-market exposure differ — factor that into any portfolio overlap. IONQ carries a beta of 1.75 versus 1.53 for UBER, meaning IONQ has historically been the more volatile of the two.

Valuation

On valuation, IONQ is the cheaper stock. IONQ trades on a forward P/E of 15.88 and EV/EBITDA of 15.3, against n/a and 20.91 for UBER. Price-to-sales is 1.79 vs 9.39, and free-cash-flow yield is 3.8% vs 6.7%. A higher multiple is only justified if the company can sustain faster growth or wider margins, which is exactly what the next sections test.

Growth profile

UBER is the faster grower. IONQ has compounded revenue at 6.0% over three years with EPS growth of 7.1%, while UBER has delivered 19.6% revenue and 12.9% EPS growth. Growth like this is the single biggest driver of long-term returns, but it also tends to come with a richer valuation, so it must be weighed against the multiples above.

Profitability and quality

On profitability and quality, IONQ is stronger. IONQ posts a 42.7% operating margin, 47.4% return on equity and 26.6% return on invested capital. UBER posts -8.0%, 1.9% and -6.0% respectively. Return on invested capital above roughly 15% is a hallmark of a durable competitive advantage, so this metric deserves particular attention.

Balance-sheet risk

UBER has the safer balance sheet. IONQ carries net-debt/EBITDA of 3.97x with a current ratio of 1.39, versus 2.07x and 3.09 for UBER. Lower leverage gives a company more room to invest through a downturn and reduces the risk of dilution or distress.

Price performance and shareholder returns

Over the past year IONQ returned -13.4% against 76.6% for UBER; on a three-year annualised basis it is -6.7% vs 24.9%. IONQ yields 3.3% and UBER yields 0.4%. Past performance never guarantees future results, but the multi-year track record shows how the market has rewarded each business so far.

Which stock fits which investor

For value-oriented investors, IONQ is the better fit on today's multiples. Growth investors will likely prefer UBER, which is expanding faster. Income investors should lean toward IONQ for its higher shareholder yield, while investors who prize quality-at-a-reasonable-price will favour IONQ for its superior returns on capital. This is a comparison of facts, not a recommendation — your time horizon, risk tolerance and existing holdings should drive the final decision.

• Value: IONQ
• Growth: UBER
• Income: IONQ
• Quality: IONQ

Frequently asked questions

Is IONQ or UBER the better buy right now?

Neither is universally "better." IONQ scores 3 and UBER scores 3 on our six-factor framework. IONQ is cheaper, UBER grows faster, and IONQ is higher quality — so the right pick depends on your objective.

Which stock is cheaper, IONQ or UBER?

IONQ is the cheaper stock across forward P/E (15.88 vs n/a), EV/EBITDA (15.3 vs 20.91) and price-to-sales (1.79 vs 9.39).

Which has grown faster, IONQ or UBER?

UBER has the stronger growth profile, with three-year revenue CAGR of 6.0% for IONQ versus 19.6% for UBER.

Which stock pays a bigger dividend?

IONQ yields 3.3% and UBER yields 0.4%, so IONQ is the stronger income choice.

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