Financial Analysis: Rigetti Computing (RGTI) versus The Competition

Rigetti Computing (NASDAQ:RGTI) is one of 221 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its peers? We will compare Rigetti Computing to similar companies based on the strength of its analyst recommendations, profitability, dividends, risk, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares Rigetti Computing and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rigetti Computing	$7.09 million	-$216.21 million	-12.34
Rigetti Computing Competitors	$39.42 billion	$2.53 billion	9.86

Rigetti Computing’s peers have higher revenue and earnings than Rigetti Computing. Rigetti Computing is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Rigetti Computing has a beta of 2.15, meaning that its stock price is 115% more volatile than the S&P 500. Comparatively, Rigetti Computing’s peers have a beta of 2.74, meaning that their average stock price is 174% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Rigetti Computing and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rigetti Computing	1	5	6	0	2.42
Rigetti Computing Competitors	3513	12382	25827	1003	2.57

Rigetti Computing presently has a consensus target price of $24.00, suggesting a potential upside of 116.02%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 36.09%. Given Rigetti Computing’s higher probable upside, equities research analysts clearly believe Rigetti Computing is more favorable than its peers.

Profitability

This table compares Rigetti Computing and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rigetti Computing	-2,189.54%	-17.50%	-13.75%
Rigetti Computing Competitors	-1,266.87%	-126.22%	-3.89%

Insider & Institutional Ownership

35.4% of Rigetti Computing shares are held by institutional investors. Comparatively, 54.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 1.6% of Rigetti Computing shares are held by company insiders. Comparatively, 11.5% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Rigetti Computing peers beat Rigetti Computing on 11 of the 13 factors compared.

Rigetti Computing Company Profile

Rigetti Computing develops superconducting quantum computers and related software. Its work spans the design and manufacture of quantum processors, as well as systems that connect quantum processors with conventional computing infrastructure. The company offers access to its quantum computers and development tools through its Quantum Cloud Services platform. It also provides quantum hardware for on-premises use, serving customers and research organizations exploring quantum applications. Founded in 2013 by physicist Chad Rigetti, the company is based in Berkeley, California.