Critical Comparison: GEMALTO NV/S (OTCMKTS:GTOMY) vs. Rigetti Computing (NASDAQ:RGTI)

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

Volatility & Risk

Rigetti Computing has a beta of 2.72, meaning that its stock price is 172% more volatile than the S&P 500. Comparatively, GEMALTO NV/S has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Rigetti Computing and GEMALTO NV/S, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rigetti Computing	0	0	4	0	3.00
GEMALTO NV/S	0	0	0	0	0.00

Rigetti Computing presently has a consensus price target of $3.00, indicating a potential downside of 71.94%. Given Rigetti Computing’s stronger consensus rating and higher possible upside, research analysts plainly believe Rigetti Computing is more favorable than GEMALTO NV/S.

Earnings & Valuation

This table compares Rigetti Computing and GEMALTO NV/S”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rigetti Computing	$11.89 million	172.86	-$75.11 million	($0.38)	-28.13
GEMALTO NV/S	$3.51 billion	1.45	$72.13 million	N/A	N/A

GEMALTO NV/S has higher revenue and earnings than Rigetti Computing.

Institutional & Insider Ownership

35.4% of Rigetti Computing shares are owned by institutional investors. 2.8% of Rigetti Computing shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Rigetti Computing and GEMALTO NV/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rigetti Computing	-509.58%	-51.56%	-37.78%
GEMALTO NV/S	N/A	N/A	N/A

Summary

Rigetti Computing beats GEMALTO NV/S on 7 of the 12 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 GEMALTO NV/S

Gemalto N.V. provides digital security products and services worldwide. The company operates through two segments, Identity, IoT & Cybersecurity; and Smartcards & Issuance. It designs security solutions to governments, industrial companies, and enterprises; and ePassports, border and visa management, biometrics, ID and health cards, voter and vehicle registration, drivers' licenses, and eGovernment support services. The company also offers machine-to-machine, and Internet of Things solutions and services; encrypting data, securing identities, and managing access services; and software licensing solutions. In addition, it provides smart card products and solutions to financial institutions, retail, transport, and mobile network operators; and secures digital banking and payment apps and services, as well as protects company and customer data through encryption. Further, the company offers ID verification solutions, mobile and Assurance Hub technologies solutions, trusted services hub services. Additionally, it licenses its intellectual property and provides security and other technology advisory services. The company was formerly known as Axalto Holding N.V. and changed its name to Gemalto N.V. in June 2006. Gemalto N.V. was incorporated in 2002 and is headquartered in Amsterdam, the Netherlands. As of April 15, 2019, Gemalto N.V. operates as a subsidiary of Thales S.A.