Rigetti Computing (NASDAQ:RGTI) and TSR (NASDAQ:TSRI) Critical Analysis

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

Risk & Volatility

TSR has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Rigetti Computing has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TSR	2.15%	11.21%	7.97%
Rigetti Computing	-509.58%	-51.56%	-37.78%

Institutional and Insider Ownership

9.7% of TSR shares are owned by institutional investors. Comparatively, 35.4% of Rigetti Computing shares are owned by institutional investors. 30.2% of TSR shares are owned by company insiders. Comparatively, 2.8% of Rigetti Computing shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for TSR and Rigetti Computing, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TSR	0	0	0	0	0.00
Rigetti Computing	0	0	5	0	3.00

Rigetti Computing has a consensus price target of $14.50, indicating a potential upside of 93.33%. Given Rigetti Computing’s stronger consensus rating and higher probable upside, analysts plainly believe Rigetti Computing is more favorable than TSR.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TSR	$88.82 million	0.33	$1.74 million	$0.85	15.74
Rigetti Computing	$10.79 million	198.68	-$75.11 million	($0.97)	-7.73

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

Summary

TSR beats Rigetti Computing on 8 of the 14 factors compared between the two stocks.

About TSR

TSR, Inc., operates as a staffing company in the United States. It primarily focus on recruiting information technology (IT) professionals for short- and long-term assignments, permanent placements, project work, and providing contract computer programming services. The company provides technical computer personnel to supplement the in-house IT capabilities of its customers in the areas of .net and java, mobile applications for Android and IOS platforms, project management, IT security specialists, cloud development and architecture, business analysts, UI design and development, network infrastructure and support, and database development and administration. It serves vendor management companies, as well as customers in the financial services business. TSR, Inc. was incorporated in 1969 and is headquartered in Hauppauge, New York.

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.