In today’s fast-evolving technology landscape, Pure Storage, Inc. (PSTG) and IonQ, Inc. (IONQ) stand out as pioneers in hardware innovation, yet they operate in distinct, high-potential niches—data storage and quantum computing. Both companies share a focus on cutting-edge solutions and market disruption, making their comparison insightful for investors seeking future growth. Join me as we explore which company presents the more compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Pure Storage and IonQ by providing an overview of these two companies and their main differences.
Pure Storage Overview
Pure Storage, Inc. focuses on providing data storage technologies, products, and services globally. Its mission centers on delivering enterprise-class data services like data reduction, protection, and encryption across a broad product portfolio including FlashArray, FlashBlade, and AI-ready infrastructure solutions. The company operates in the computer hardware industry and has a significant market presence with 6,000 employees and a market cap of approximately 24.7B USD.
IonQ Overview
IonQ, Inc. specializes in developing general-purpose quantum computing systems, offering access to quantum computers with 20 qubits via cloud platforms such as AWS, Microsoft Azure, and Google Cloud. Founded in 2015, IonQ operates within the technology sector, focusing on pioneering quantum computing solutions. The company has a smaller scale with 407 employees and a market cap near 17.3B USD, reflecting its niche position in the emerging quantum hardware market.
Key similarities and differences
Both Pure Storage and IonQ operate in the technology sector within the computer hardware industry, focusing on advanced computing solutions. Pure Storage emphasizes traditional enterprise data storage with a broad hardware and software portfolio, while IonQ concentrates on cutting-edge quantum computing access via cloud services. Their business models differ notably, with Pure Storage targeting data storage customers and IonQ serving cloud users seeking quantum computing capabilities, reflecting distinct technological focuses and market approaches.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for Pure Storage, Inc. and IonQ, Inc. based on their most recent fiscal year results.
| Metric | Pure Storage, Inc. (PSTG) | IonQ, Inc. (IONQ) |
|---|---|---|
| Market Cap | 24.7B | 17.3B |
| Revenue | 3.17B | 43.1M |
| EBITDA | 282M | -313M |
| EBIT | 156M | -332M |
| Net Income | 107M | -332M |
| EPS | 0.33 | -1.56 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Pure Storage, Inc.
Pure Storage’s revenue grew steadily from $1.68B in 2021 to $3.17B in 2025, with net income improving from a loss of $282M in 2021 to a positive $107M in 2025. Gross margins remained strong at nearly 70%, while EBIT and net margins showed moderate improvement. The 2025 fiscal year displayed robust revenue growth of 11.9% and a 55.6% increase in net margin, highlighting significant profitability gains.
IonQ, Inc.
IonQ’s revenue increased sharply to $43M in 2024 from near zero in 2020, but net income remained deeply negative, worsening to a $332M loss in 2024. Gross margins hovered low at 8.9%, with EBIT and net margins deeply unfavorable, reflecting ongoing high operating costs. Despite a 95.4% revenue growth in 2024, profitability declined, with EPS and net margin deteriorating further.
Which one has the stronger fundamentals?
Pure Storage exhibits stronger fundamentals, supported by consistent revenue growth, positive and improving net income, and stable gross margins. IonQ, while experiencing rapid revenue expansion, suffers from persistent and deep losses with unfavorable profitability metrics. The income statement evaluations favor Pure Storage’s financial health and operational efficiency over IonQ’s current performance.
Financial Ratios Comparison
Below is a comparison of key financial ratios for Pure Storage, Inc. (PSTG) and IonQ, Inc. (IONQ) based on their most recent fiscal year data.
| Ratios | Pure Storage, Inc. (PSTG) FY 2025 | IonQ, Inc. (IONQ) FY 2024 |
|---|---|---|
| ROE | 8.17% | -86.40% |
| ROIC | 2.45% | -48.55% |
| P/E | 206.9 | -26.8 |
| P/B | 16.9 | 23.2 |
| Current Ratio | 1.61 | 10.5 |
| Quick Ratio | 1.58 | 9.98 |
| D/E (Debt-to-Equity) | 0.215 | 0.046 |
| Debt-to-Assets | 7.1% | 3.5% |
| Interest Coverage | 10.9 | 0 (not positive) |
| Asset Turnover | 0.80 | 0.085 |
| Fixed Asset Turnover | 5.21 | 0.69 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
Pure Storage, Inc.
Pure Storage shows a mixed ratio profile with favorable liquidity and low leverage, but weak profitability and valuation metrics. The net margin of 3.37% and return on equity of 8.17% are considered unfavorable, while the price-to-earnings ratio of 206.9 signals overvaluation risk. The company does not pay dividends, likely reinvesting earnings into growth and R&D.
IonQ, Inc.
IonQ’s ratios indicate significant challenges, including a highly negative net margin (-770%) and return on equity (-86.4%), reflecting ongoing losses. The firm maintains a strong quick ratio and low debt levels, but poor asset turnover and zero interest coverage raise concerns. IonQ also does not pay dividends, focusing on growth and innovation in quantum computing.
Which one has the best ratios?
Comparing both, Pure Storage offers a more balanced financial profile with some favorable liquidity and leverage ratios despite weak profitability. IonQ’s ratios are predominantly unfavorable, reflecting its early-stage status and operational losses. Pure Storage’s ratio set is comparatively stronger, while IonQ faces greater financial risks.
Strategic Positioning
This section compares the strategic positioning of Pure Storage and IonQ, including Market position, Key segments, and disruption:
Pure Storage, Inc.
- Established in data storage with a $24.7B market cap facing moderate competitive pressure.
- Focus on data storage products and services, including FlashArray and cloud-native solutions.
- Operates in a traditional hardware sector with incremental innovation in storage tech.
IonQ, Inc.
- Emerging quantum computing player with a $17.3B market cap and high competitive volatility.
- Concentrates on quantum computing systems and cloud access with 20 qubits capacity.
- Positioned in quantum computing, exposed to high technological disruption and rapid evolution.
Pure Storage, Inc. vs IonQ, Inc. Positioning
Pure Storage pursues a diversified business model with multiple product and service offerings, providing stable revenue streams. IonQ is more concentrated on cutting-edge quantum computing, exposing it to higher risk and innovation dependency based on the provided data.
Which has the best competitive advantage?
Pure Storage exhibits a slightly unfavorable moat with growing profitability, indicating some value creation potential. IonQ shows a very unfavorable moat with declining profitability, suggesting a weaker competitive advantage given the current data.
Stock Comparison
The past 12 months show significant bullish trends for Pure Storage, Inc. (PSTG) and IonQ, Inc. (IONQ), with notable price surges followed by recent decelerating declines in trading dynamics.
Trend Analysis
Pure Storage, Inc. (PSTG) exhibited a strong bullish trend with an 85.88% price increase over the past year, despite recent deceleration and a 23.6% decline since November 2025. Volatility remains moderate with a 12.83 std deviation.
IonQ, Inc. (IONQ) showed a robust bullish trend with a 359.53% gain over the last 12 months, though recent performance declined by 21.55%, reflecting deceleration amid higher volatility at 18.7 std deviation.
Comparing both, IonQ outperformed Pure Storage significantly in market performance over the year, despite both stocks experiencing recent downward pressure.
Target Prices
Analysts provide a clear consensus on target prices for Pure Storage, Inc. and IonQ, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Pure Storage, Inc. | 105 | 60 | 91.15 |
| IonQ, Inc. | 100 | 55 | 72.57 |
The consensus target for Pure Storage at 91.15 suggests a potential upside from its current price of 75.41, indicating moderate bullish expectations. IonQ’s consensus target of 72.57 is significantly above its current price of 48.94, reflecting stronger growth optimism from analysts.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Pure Storage, Inc. and IonQ, Inc.:
Rating Comparison
Pure Storage, Inc. Rating
- Rating: B-, considered very favorable by analysts.
- Discounted Cash Flow Score: 3, indicating moderate valuation status.
- ROE Score: 3, showing moderate efficiency in generating shareholder profit.
- ROA Score: 3, reflecting moderate asset utilization effectiveness.
- Debt To Equity Score: 3, a moderate financial risk profile.
- Overall Score: 2, moderate overall financial standing.
IonQ, Inc. Rating
- Rating: C-, also considered very favorable despite lower scores.
- Discounted Cash Flow Score: 1, indicating very unfavorable status.
- ROE Score: 1, showing very unfavorable efficiency.
- ROA Score: 1, reflecting very unfavorable asset utilization.
- Debt To Equity Score: 4, a favorable assessment of financial risk.
- Overall Score: 1, very unfavorable overall financial standing.
Which one is the best rated?
Pure Storage, Inc. holds a better overall rating (B-) with moderate scores on key financial metrics, while IonQ, Inc. has generally lower scores except for a favorable debt-to-equity profile, resulting in a lower overall score.
Scores Comparison
Here is the comparison of the Altman Z-Score and Piotroski Score for Pure Storage, Inc. and IonQ, Inc.:
Pure Storage, Inc. Scores
- Altman Z-Score: 5.91, indicating a safe financial zone with low bankruptcy risk.
- Piotroski Score: 5, reflecting average financial strength and investment quality.
IonQ, Inc. Scores
- Altman Z-Score: 3.67, indicating a safe financial zone with moderate safety margin.
- Piotroski Score: 2, indicating very weak financial strength and poor investment quality.
Which company has the best scores?
Pure Storage, Inc. has a higher Altman Z-Score and a stronger Piotroski Score than IonQ, Inc., suggesting better overall financial stability and strength based strictly on these scores.
Grades Comparison
The following presents a comparison of recent grades assigned to Pure Storage, Inc. and IonQ, Inc. by reputable grading companies:
Pure Storage, Inc. Grades
This table summarizes recent analyst grades for Pure Storage, Inc. from established financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Sell | 2025-12-03 |
| Barclays | Maintain | Equal Weight | 2025-12-03 |
| Needham | Maintain | Buy | 2025-12-03 |
| Susquehanna | Downgrade | Neutral | 2025-12-03 |
| JP Morgan | Maintain | Overweight | 2025-12-03 |
| Citigroup | Maintain | Buy | 2025-12-03 |
| Wedbush | Maintain | Outperform | 2025-12-03 |
| Lake Street | Maintain | Buy | 2025-12-03 |
| JP Morgan | Maintain | Overweight | 2025-11-17 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-17 |
Overall, Pure Storage’s grades show a mixed but generally positive sentiment with multiple buy and overweight ratings balanced by a sell rating and a downgrade from positive to neutral.
IonQ, Inc. Grades
The following table lists recent analyst grades for IonQ, Inc. provided by recognized financial firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Benchmark | Maintain | Buy | 2024-08-12 |
| Goldman Sachs | Maintain | Neutral | 2024-08-09 |
| Craig-Hallum | Maintain | Buy | 2024-08-08 |
| Needham | Maintain | Buy | 2024-05-16 |
| Needham | Maintain | Buy | 2024-05-09 |
| Goldman Sachs | Maintain | Neutral | 2024-02-29 |
| Needham | Maintain | Buy | 2024-02-29 |
| Morgan Stanley | Maintain | Equal Weight | 2023-10-30 |
| Needham | Maintain | Buy | 2023-09-20 |
| Needham | Maintain | Buy | 2023-09-19 |
IonQ’s grades predominantly indicate a buy consensus with consistent maintenance of buy ratings, punctuated by a few neutral and equal weight opinions.
Which company has the best grades?
Both Pure Storage and IonQ carry an overall consensus rating of “Buy.” However, IonQ has a stronger uniformity of buy ratings and fewer negative or neutral opinions compared to Pure Storage, which has a broader spread including sell and neutral ratings. Investors might interpret IonQ’s more consistent buy grades as a clearer positive analyst sentiment, while Pure Storage shows a more varied outlook that may reflect greater uncertainty or risk.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Pure Storage, Inc. (PSTG) and IonQ, Inc. (IONQ) based on their latest financial and operational data.
| Criterion | Pure Storage, Inc. (PSTG) | IonQ, Inc. (IONQ) |
|---|---|---|
| Diversification | Balanced revenue from products ($1.7B) and services ($1.47B) as of 2025 | Limited product/service diversification; primarily focused on quantum computing technology |
| Profitability | Slightly unfavorable net margin (3.37%) and ROIC (2.45%) below WACC (9.65%) | Very unfavorable net margin (-770%) and ROIC (-48.55%), with profitability declining |
| Innovation | Growing ROIC trend indicates improving efficiency and innovation | Declining ROIC trend signals challenges in innovation and capital utilization |
| Global presence | Established global presence with steady revenue growth | Emerging player with limited global market penetration |
| Market Share | Strong presence in storage solutions with increasing product revenue | Niche market in quantum computing, with limited current market share |
Key takeaways: Pure Storage demonstrates a more balanced business model with improving profitability trends and diversified revenue streams, although profitability remains below optimal levels. IonQ’s financials reflect significant challenges with declining profitability and limited diversification, highlighting higher investment risk despite its innovative quantum focus.
Risk Analysis
Below is a comparison of key risk factors for Pure Storage, Inc. (PSTG) and IonQ, Inc. (IONQ) based on the most recent data available.
| Metric | Pure Storage, Inc. (PSTG) | IonQ, Inc. (IONQ) |
|---|---|---|
| Market Risk | Beta 1.26 (moderate) | Beta 2.63 (high) |
| Debt level | Low (D/E 0.22, favorable) | Very low (D/E 0.05) |
| Regulatory Risk | Moderate (tech sector) | Moderate (emerging tech) |
| Operational Risk | Moderate (6,000 employees) | High (407 employees, early stage) |
| Environmental Risk | Low (computer hardware) | Low (quantum computing) |
| Geopolitical Risk | Moderate (US-based, global sales) | Moderate (US-based, global cloud partners) |
The most impactful risk for IonQ is its high market volatility (beta 2.63) combined with unfavorable profitability ratios and very weak Piotroski score, signaling financial fragility. Pure Storage, while facing market risks and valuation concerns, shows stronger financial stability and lower debt risk, making operational and market risks more manageable. Investors should be cautious with IonQ due to its higher risk profile and early-stage challenges.
Which Stock to Choose?
Pure Storage, Inc. (PSTG) shows a favorable income evolution with 12% revenue growth in 2025 and strong profitability improvement, despite mixed financial ratios. Debt levels are low and well-covered, supporting a solid B- rating. The company’s ROIC is growing but remains below WACC, indicating slight value destruction.
IonQ, Inc. (IONQ) exhibits a strong revenue surge of 95% in 2024 but suffers from unfavorable profitability and financial ratios with negative margins and returns. Debt is minimal, yet overall financial health is weak, reflected in a C- rating. The company’s ROIC is declining well below WACC, signaling significant value destruction.
Investors with a tolerance for volatility and a focus on rapid revenue growth might find IonQ’s high expansion appealing despite its weak profitability and financial health. Conversely, those seeking improving profitability and more balanced financials may view Pure Storage as a more stable, though still cautiously evaluated, option.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Pure Storage, Inc. and IonQ, Inc. to enhance your investment decisions:
