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Financial Analysis: Rigetti Computing (NASDAQ:RGTI) Versus Compass Digital Acquisition (NASDAQ:CDAQ)

Defense World ·  Apr 29, 2023 01:53

Rigetti Computing (NASDAQ:RGTI – Get Rating) and Compass Digital Acquisition (NASDAQ:CDAQ – Get Rating) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

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

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Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rigetti Computing 0 1 4 0 2.80
Compass Digital Acquisition 0 0 0 0 N/A

Rigetti Computing presently has a consensus target price of $2.17, indicating a potential upside of 360.99%. Given Rigetti Computing's higher probable upside, equities analysts clearly believe Rigetti Computing is more favorable than Compass Digital Acquisition.

Volatility and Risk

Rigetti Computing has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Compass Digital Acquisition has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.

Institutional & Insider Ownership

43.3% of Rigetti Computing shares are owned by institutional investors. Comparatively, 70.9% of Compass Digital Acquisition shares are owned by institutional investors. 0.5% of Rigetti Computing shares are owned by insiders. Comparatively, 20.0% of Compass Digital Acquisition shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Rigetti Computing and Compass Digital Acquisition's top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rigetti Computing $13.10 million 4.62 -$71.52 million ($0.64) -0.73
Compass Digital Acquisition N/A N/A N/A N/A N/A

Compass Digital Acquisition has lower revenue, but higher earnings than Rigetti Computing.

Profitability

This table compares Rigetti Computing and Compass Digital Acquisition's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rigetti Computing -473.75% -45.25% -33.03%
Compass Digital Acquisition N/A N/A N/A

Summary

Compass Digital Acquisition beats Rigetti Computing on 5 of the 9 factors compared between the two stocks.

About Rigetti Computing

(Get Rating)

Rigetti Computing, Inc. operates as an integrated systems company. The company builds quantum computers and the superconducting quantum processors that power them. Its machines are integrated into various public, private, or hybrid clouds through its Quantum Cloud Services platform. The company was founded in 2013 and is based in Berkeley, California.

About Compass Digital Acquisition

(Get Rating)

Compass Digital Acquisition Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company intends to focus its search on companies in the technology sectors, including in the technology led digital transformation software and services sector. Compass Digital Acquisition Corp. was incorporated in 2021 and is based in Dallas, Texas.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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