Comparing Rigetti Computing (NASDAQ:RGTI) and PROS (NYSE:PRO)

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

Analyst Ratings

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

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

PROS currently has a consensus price target of $32.00, suggesting a potential upside of 58.87%. Rigetti Computing has a consensus price target of $14.50, suggesting a potential upside of 65.71%. Given Rigetti Computing’s stronger consensus rating and higher possible upside, analysts plainly believe Rigetti Computing is more favorable than PROS.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROS	$330.37 million	2.90	-$20.48 million	($0.44)	-45.78
Rigetti Computing	$10.79 million	155.94	-$75.11 million	($0.97)	-9.02

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PROS	-6.20%	N/A	-3.80%
Rigetti Computing	-509.58%	-51.56%	-37.78%

Volatility and Risk

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

Institutional and Insider Ownership

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

Summary

PROS beats Rigetti Computing on 9 of the 14 factors compared between the two stocks.

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.

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.