Financial Contrast: NXP Semiconductors (NASDAQ:NXPI) vs. Rigetti Computing (NASDAQ:RGTI)

NXP Semiconductors (NASDAQ:NXPI) and Rigetti Computing (NASDAQ:RGTI) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NXP Semiconductors	$12.27 billion	5.01	$2.02 billion	$11.72	20.79
Rigetti Computing	$7.09 million	717.91	-$216.21 million	($0.90)	-16.94

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for NXP Semiconductors and Rigetti Computing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NXP Semiconductors	1	9	16	0	2.58
Rigetti Computing	2	4	7	0	2.38

NXP Semiconductors currently has a consensus target price of $305.65, indicating a potential upside of 25.44%. Rigetti Computing has a consensus target price of $30.67, indicating a potential upside of 101.09%. Given Rigetti Computing’s higher possible upside, analysts plainly believe Rigetti Computing is more favorable than NXP Semiconductors.

Insider & Institutional Ownership

90.5% of NXP Semiconductors shares are owned by institutional investors. Comparatively, 35.4% of Rigetti Computing shares are owned by institutional investors. 0.1% of NXP Semiconductors shares are owned by insiders. Comparatively, 1.6% of Rigetti Computing shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NXP Semiconductors	22.56%	27.83%	11.07%
Rigetti Computing	-2,189.54%	-17.50%	-13.75%

Risk & Volatility

NXP Semiconductors has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500. Comparatively, Rigetti Computing has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500.

Summary

NXP Semiconductors beats Rigetti Computing on 10 of the 14 factors compared between the two stocks.

About NXP Semiconductors

NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.

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.