Critical Analysis: NetApp (NASDAQ:NTAP) vs. Rigetti Computing (NASDAQ:RGTIW)

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

Earnings & Valuation

This table compares NetApp 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
NetApp	$6.36 billion	3.23	$1.27 billion	$4.40	22.60
Rigetti Computing	$12.01 million	N/A	N/A	N/A	N/A

NetApp has higher revenue and earnings than Rigetti Computing.

Institutional & Insider Ownership

92.2% of NetApp shares are held by institutional investors. 0.4% of NetApp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NetApp	15.21%	109.49%	11.07%
Rigetti Computing	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for NetApp and Rigetti Computing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetApp	1	10	5	0	2.25
Rigetti Computing	0	0	0	0	N/A

NetApp presently has a consensus target price of $100.60, suggesting a potential upside of 1.28%. Given NetApp’s higher possible upside, analysts clearly believe NetApp is more favorable than Rigetti Computing.

Summary

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

About NetApp

NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID. In addition, it provides cloud storage and data services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, NetApp Cloud Volumes Service for Google Cloud, and cloud operations services, such as NetApp Cloud Insights, Spot by NetApp, and Instaclustr. Further, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Additionally, it provides assessment, design, implementation, and migration services. The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video postproduction, and markets through a direct sales force and an ecosystem of partners. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.

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.