Analyzing Enphase Energy (NASDAQ:ENPH) & Rigetti Computing (NASDAQ:RGTI)

Rigetti Computing (NASDAQ:RGTI) and Enphase Energy (NASDAQ:ENPH) are both mid-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rigetti Computing	-2,189.54%	-17.50%	-13.75%
Enphase Energy	10.09%	13.31%	4.66%

Risk and Volatility

Rigetti Computing has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Earnings & Valuation

This table compares Rigetti Computing and Enphase Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rigetti Computing	$7.09 million	715.56	-$216.21 million	($0.90)	-16.89
Enphase Energy	$1.47 billion	3.26	$172.13 million	$1.00	36.37

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

Insider & Institutional Ownership

35.4% of Rigetti Computing shares are owned by institutional investors. Comparatively, 72.1% of Enphase Energy shares are owned by institutional investors. 1.6% of Rigetti Computing shares are owned by company insiders. Comparatively, 2.9% of Enphase Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Rigetti Computing and Enphase Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rigetti Computing	2	4	7	0	2.38
Enphase Energy	3	11	9	0	2.26

Rigetti Computing presently has a consensus target price of $30.67, indicating a potential upside of 101.75%. Enphase Energy has a consensus target price of $45.79, indicating a potential upside of 25.91%. Given Rigetti Computing’s stronger consensus rating and higher possible upside, analysts plainly believe Rigetti Computing is more favorable than Enphase Energy.

Summary

Enphase Energy beats Rigetti Computing on 10 of the 14 factors compared between the two stocks.

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.

About Enphase Energy

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control. It also provides microinverter units and related accessories, an IQ gateway; IQ batteries; the cloud-based Enlighten monitoring service; storage solutions; and electric vehicle charging solutions, as well as design, proposal, permitting, and lead generation services. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.