Is D-Wave Quantum One of the Best Quantum Computing Stocks to Buy Now?

Quantum computing is receiving increasing attention as the next major technological advancement. Even the U.S. government is considering taking equity stakes in American quantum computing companies to ensure it remains at the forefront of the technology. One company that has received a lot of attention is D-Wave Quantum (NYSE: QBTS).

Up around 1,700% in the past 12 months and 200% this year through Nov. 10, D-Wave Quantum has reached the radar of many potential investors. However, is it one of the best quantum computing stocks to buy now?

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One reason D-Wave Quantum is one of the best quantum computing stocks right now is that it has commercially available products and services, whereas many other companies are still in the research phase. It offers developer software tools, hardware systems, cloud services, and a handful of other solutions that can be used today.

One area of caution, however, is that its financials are still trying to find their footing. In the third quarter, it generated $3.7 million in revenue (up 100% from the year-ago period), but its net losses came in at $140 million. This isn't inherently a problem, as many hypergrowth companies operate at a loss, but the stock's valuation does leave little room for error.

At the time of this writing, D-Wave Quantum is trading at a price-to-sales (P/S) ratio of around 354. For perspective, high-growth company Nvidia has a P/S ratio just below 30, and its business is much more mature and growing at a faster pace. That said, if you're looking for a pure-play quantum computing stock, then D-Wave Quantum is one of your best options.

Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.