Contrasting ACM Research (NASDAQ:ACMR) and Rigetti Computing (NASDAQ:RGTI)

Rigetti Computing (NASDAQ:RGTI) and ACM Research (NASDAQ:ACMR) are both mid-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rigetti Computing	-2,189.54%	-17.82%	-13.74%
ACM Research	9.48%	4.17%	2.75%

Analyst Ratings

This is a summary of recent recommendations and price targets for Rigetti Computing and ACM Research, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rigetti Computing	1	4	7	0	2.50
ACM Research	0	2	2	0	2.50

Rigetti Computing presently has a consensus target price of $30.67, suggesting a potential upside of 70.94%. ACM Research has a consensus target price of $127.50, suggesting a potential upside of 52.15%. Given Rigetti Computing’s higher possible upside, research analysts clearly believe Rigetti Computing is more favorable than ACM Research.

Valuation & Earnings

This table compares Rigetti Computing and ACM Research”s 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	841.08	-$216.21 million	($0.87)	-20.62
ACM Research	$901.31 million	5.69	$94.08 million	$1.31	63.97

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

Institutional & Insider Ownership

35.4% of Rigetti Computing shares are owned by institutional investors. Comparatively, 66.7% of ACM Research shares are owned by institutional investors. 1.6% of Rigetti Computing shares are owned by company insiders. Comparatively, 24.4% of ACM Research shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Rigetti Computing has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500. Comparatively, ACM Research has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.

Summary

ACM Research beats Rigetti Computing on 9 of the 13 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 ACM Research

ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. It offers space alternated phase shift technology for flat and patterned wafer surfaces, which employs alternating phases of megasonic waves to deliver megasonic energy in a uniform manner on a microscopic level; timely energized bubble oscillation technology for patterned wafer surfaces at advanced process nodes, which provides cleaning for 2D and 3D patterned wafers; Tahoe technology for delivering cleaning performance using less sulfuric acid and hydrogen peroxide; and electro-chemical plating technology for advanced metal plating. The company markets and sells its products under the SAPS, TEBO, ULTRA C, ULTRA Fn, Ultra ECP, Ultra ECP map, and Ultra ECP ap trademarks through direct sales force and third-party representatives. ACM Research, Inc. was incorporated in 1998 and is headquartered in Fremont, California.