Critical Review: Rigetti Computing (NASDAQ:RGTI) & PROS (NYSE:PRO)

Rigetti Computing (NASDAQ:RGTI) and PROS (NYSE:PRO) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

35.4% of Rigetti Computing shares are held by institutional investors. Comparatively, 94.3% of PROS shares are held by institutional investors. 2.8% of Rigetti Computing shares are held by insiders. Comparatively, 3.7% of PROS shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rigetti Computing	0	0	5	0	3.00
PROS	0	1	7	0	2.88

Rigetti Computing presently has a consensus target price of $14.50, suggesting a potential upside of 29.23%. PROS has a consensus target price of $32.00, suggesting a potential upside of 55.34%. Given PROS’s higher possible upside, analysts clearly believe PROS is more favorable than Rigetti Computing.

Volatility & Risk

Rigetti Computing has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, PROS has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Rigetti Computing and PROS’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%
PROS	-6.20%	N/A	-3.80%

Valuation and Earnings

This table compares Rigetti Computing and PROS”s top-line 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	199.96	-$75.11 million	($0.97)	-11.57
PROS	$330.37 million	2.97	-$20.48 million	($0.44)	-46.82

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

Summary

PROS beats Rigetti Computing on 10 of the 14 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 PROS

PROS Holdings, Inc. provides software solutions that optimize the processes of selling and shopping in the digital economy in Europe, the Asia Pacific, the Middle East, Africa, and internationally. The company offers PROS Smart Configure Price Quote that improves sales productivity and accelerate deal velocity by automating common sales tasks; and PROS Smart Price Optimization and Management, which enables businesses to optimize, personalize, and harmonize pricing. It also provides PROS Airline Revenue Optimization; PROS Airline Revenue Management solution that delivers algorithmic forecasting and network optimization for the travel industry; PROS Airline Real-Time Dynamic Pricing, which offers accurate booking class availability and seat prices; PROS Dynamic Ancillary Pricing, an AI-based reinforcement learning algorithm; PROS Airline Group Sales Optimizer that enables airlines and their travel agent partners to create and manage group bookings, contracts, policies, and payments; and PROS Corporate Sales, a solution that enables airlines to create commercial agreements with corporate customers. In addition, the company provides PROS Digital Retail, a configurable end-to-end solution for airlines to optimize the traveler experience from inspiration to post-trip; PROS Dynamic Offers; and PROS Digital Offer Marketing solutions comprising airTRFX, airModules, airWire, and airSEM platforms. Further, it provides software-related services, such as implementation, configuration, consulting, training, maintenance, and support services. The company markets and sells its solutions to customers in various industries, including automotive and industrial manufacturing, transportation and logistics, chemicals and energy, food and consumables, beverages, healthcare, insurance, technology, and travel through its direct sales force, partners, resellers, and systems integrators. PROS Holdings, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.