Quantum Computing (NASDAQ:QUBT) versus Rigetti Computing (NASDAQ:RGTI) Critical Review

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quantum Computing	$370,000.00	6,941.66	-$136.71 million	($0.61)	-18.79
Rigetti Computing	$10.79 million	717.26	-$200.99 million	($1.30)	-18.04

Quantum Computing has higher earnings, but lower revenue 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.

Profitability

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

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

Institutional & Insider Ownership

4.3% of Quantum Computing shares are held by institutional investors. Comparatively, 35.4% of Rigetti Computing shares are held by institutional investors. 19.3% of Quantum Computing shares are held by company insiders. Comparatively, 1.9% of Rigetti Computing shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Quantum Computing and Rigetti Computing, as reported by MarketBeat.

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

Quantum Computing currently has a consensus price target of $18.00, suggesting a potential upside of 57.07%. Rigetti Computing has a consensus price target of $32.60, suggesting a potential upside of 39.02%. Given Quantum Computing’s higher probable upside, research analysts plainly believe Quantum Computing is more favorable than Rigetti Computing.

Summary

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

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.

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.