Quantum Computing (NASDAQ:QUBT) vs. Rigetti Computing (NASDAQ:RGTI) Critical Analysis

Rigetti Computing (NASDAQ:RGTI) and Quantum Computing (NASDAQ:QUBT) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Profitability

This table compares Rigetti Computing and Quantum Computing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rigetti Computing	-4,741.49%	-21.98%	-15.19%
Quantum Computing	N/A	N/A	N/A

Valuation & Earnings

This table compares Rigetti Computing and Quantum Computing”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rigetti Computing	$10.79 million	673.21	-$200.99 million	($1.30)	-16.93
Quantum Computing	$370,000.00	6,741.77	-$136.71 million	($0.61)	-18.25

Quantum Computing has lower revenue, but higher earnings than Rigetti Computing. Quantum Computing is trading at a lower price-to-earnings ratio than Rigetti Computing, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Rigetti Computing has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Quantum Computing has a beta of 3.49, suggesting that its stock price is 249% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Rigetti Computing and Quantum Computing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rigetti Computing	1	2	8	0	2.64
Quantum Computing	1	2	2	1	2.50

Rigetti Computing presently has a consensus target price of $32.60, indicating a potential upside of 48.11%. Quantum Computing has a consensus target price of $18.00, indicating a potential upside of 61.73%. Given Quantum Computing’s higher probable upside, analysts plainly believe Quantum Computing is more favorable than Rigetti Computing.

Institutional and Insider Ownership

35.4% of Rigetti Computing shares are owned by institutional investors. Comparatively, 4.3% of Quantum Computing shares are owned by institutional investors. 19.3% of Quantum Computing shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Quantum Computing beats Rigetti Computing on 10 of the 15 factors compared between the two stocks.

About Rigetti Computing

Rigetti Computing, Inc., through its subsidiaries, builds quantum computers and the superconducting quantum processors. The company offers cloud in a form of quantum processing unit, such as 9-qubit chip and Ankaa-2 system under the Novera brand name; and sells access to its quantum computers through quantum computing as a service. It also provides quantum cloud services that provides various range of support in programming, public or private clouds integration, and connectivity, as well as quantum operating system software that supports both public and private cloud architectures. In addition, the company offers professional services, such as algorithm development, benchmarking, quantum application programming, and software development. The company serves commercial enterprises, government organizations, and international government entities. It has operations in the United States and the United Kingdom. Rigetti Computing, Inc. was founded in 2013 and is headquartered in Berkeley, California.

About Quantum Computing

Quantum Computing Inc., an integrated photonics company, offers accessible and affordable quantum machines. The company offers Dirac systems are portable, low power, and room temperature qubit and qudit entropy quantum computers (EQC); reservoir computing; remote sensing; and single photon imaging. It also provides Quantum random number generator (uQRNG), a portable device that provides genuine random numbers directly from quantum processes; and quantum authentication which eliminates vulnerabilities inherent in classical cryptographic schemes by offering a comprehensive entanglement-based quantum cyber solution that seamlessly integrates into existing telecom fiber and communication infrastructure. The company was formerly known as Innovative Beverage Group Holdings, Inc. Quantum Computing, Inc. was incorporated in 2018 and is based in Hoboken, New Jersey.