Financial Survey: Lakeshore Acquisition II (NASDAQ:LBBB) & Rigetti Computing (NASDAQ:RGTI)

Lakeshore Acquisition II (NASDAQ:LBBB) and Rigetti Computing (NASDAQ:RGTI) are both small-cap unclassified companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lakeshore Acquisition II	N/A	N/A	N/A
Rigetti Computing	-625.42%	-59.51%	-41.47%

Institutional & Insider Ownership

56.6% of Lakeshore Acquisition II shares are held by institutional investors. Comparatively, 35.4% of Rigetti Computing shares are held by institutional investors. 36.2% of Lakeshore Acquisition II shares are held by company insiders. Comparatively, 2.6% of Rigetti Computing shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Lakeshore Acquisition II and Rigetti Computing’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lakeshore Acquisition II	N/A	N/A	N/A	N/A	N/A
Rigetti Computing	$12.01 million	15.61	-$75.11 million	($0.58)	-2.03

Lakeshore Acquisition II has higher earnings, but lower revenue than Rigetti Computing.

Analyst Ratings

This is a summary of current recommendations and price targets for Lakeshore Acquisition II and Rigetti Computing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lakeshore Acquisition II	0	0	0	0	N/A
Rigetti Computing	0	0	3	0	3.00

Rigetti Computing has a consensus target price of $3.17, indicating a potential upside of 168.36%. Given Rigetti Computing’s higher possible upside, analysts plainly believe Rigetti Computing is more favorable than Lakeshore Acquisition II.

Risk and Volatility

Lakeshore Acquisition II has a beta of -0.34, meaning that its stock price is 134% less volatile than the S&P 500. Comparatively, Rigetti Computing has a beta of 2.43, meaning that its stock price is 143% more volatile than the S&P 500.

Summary

Lakeshore Acquisition II beats Rigetti Computing on 5 of the 9 factors compared between the two stocks.

About Lakeshore Acquisition II

Lakeshore Acquisition II Corp. does not have significant operations. It focuses on effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization, or similar business combination with one or more businesses or entities. The company was incorporated in 2021 and is based in New York, 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.