Head-To-Head Survey: EPAM Systems (NYSE:EPAM) versus Rigetti Computing (NASDAQ:RGTI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EPAM Systems	9.68%	14.92%	11.91%
Rigetti Computing	-509.58%	-51.56%	-37.78%

Volatility & Risk

EPAM Systems has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Rigetti Computing has a beta of 2.72, indicating that its share price is 172% more volatile than the S&P 500.

Insider & Institutional Ownership

91.6% of EPAM Systems shares are held by institutional investors. Comparatively, 35.4% of Rigetti Computing shares are held by institutional investors. 4.3% of EPAM Systems shares are held by company insiders. Comparatively, 2.8% of Rigetti Computing shares are held by company 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.

Analyst Recommendations

This is a summary of current recommendations for EPAM Systems and Rigetti Computing, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPAM Systems	0	6	14	0	2.70
Rigetti Computing	0	0	5	0	3.00

EPAM Systems presently has a consensus price target of $272.20, indicating a potential upside of 12.86%. Rigetti Computing has a consensus price target of $4.80, indicating a potential downside of 68.91%. Given EPAM Systems’ higher probable upside, analysts clearly believe EPAM Systems is more favorable than Rigetti Computing.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPAM Systems	$4.64 billion	2.95	$417.08 million	$7.70	31.32
Rigetti Computing	$11.89 million	249.67	-$75.11 million	($0.38)	-40.63

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

Summary

EPAM Systems beats Rigetti Computing on 11 of the 14 factors compared between the two stocks.

About EPAM Systems

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; infrastructure management services, such as software development, testing, performance tuning, deployment, maintenance, and support services. It also provides operation solutions comprising integrated engineering practices and smart automation services. In addition, the company offers business, experience, technology, data, and technical advisory consulting services; and digital and service design solutions, which comprise strategy, design, creative, and program management services, as well as physical product development, such as artificial intelligence, robotics, and virtual reality. The company serves the financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, and other industries EPAM Systems, Inc. was founded in 1993 and is headquartered in Newtown, Pennsylvania.

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.