Analyzing Rigetti Computing (NASDAQ:RGTI) and Perion Network (NASDAQ:PERI)

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

Institutional & Insider Ownership

68.1% of Perion Network shares are held by institutional investors. Comparatively, 35.4% of Rigetti Computing shares are held by institutional investors. 2.8% of Perion Network shares are held by insiders. Comparatively, 2.8% of Rigetti Computing shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Perion Network and Rigetti Computing”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Perion Network	$743.16 million	0.57	$117.41 million	$0.93	9.54
Rigetti Computing	$11.89 million	158.95	-$75.11 million	($0.38)	-25.87

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Perion Network	7.81%	10.93%	8.10%
Rigetti Computing	-509.58%	-51.56%	-37.78%

Risk and Volatility

Perion Network has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Rigetti Computing has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Perion Network and Rigetti Computing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Perion Network	0	5	1	0	2.17
Rigetti Computing	0	0	5	0	3.00

Perion Network presently has a consensus target price of $12.13, suggesting a potential upside of 36.70%. Rigetti Computing has a consensus target price of $5.70, suggesting a potential downside of 42.01%. Given Perion Network’s higher possible upside, equities analysts plainly believe Perion Network is more favorable than Rigetti Computing.

Summary

Perion Network beats Rigetti Computing on 10 of the 14 factors compared between the two stocks.

About Perion Network

Perion Network Ltd. provides digital advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. It offers Wildfire, a content monetization platform; search monetization solutions, including website monetization, search mediation, and app monetization; and cross-channel digital advertising software as a service platform. The company also provides supply management platform; demand management platform for campaign planning and design; analytics platform, which provides information and performance insights; creative platform, a robust media platform; and an AI platform that uses machine learning to bring intelligence to the various phases of campaigns. In addition, it offers an actionable performance monitoring platform to support the various phases of campaign management; an online video player and integrated ad server to upload, manage, and stream video content; content monetization system, which integrates ads within the content layouts at the page level. Further, the company provides a publisher management system that provides analytics and performance optimization tools, as well as reports; search-demand management systems; monetization products that integrate and onboards demand vendors; and AI Systems. Additionally, it offers Intelligent HUB (iHUB), which connects the supply and demand sides of the marketplace; and strategic optimization of relevant traits (SORT), a provisional patent technology that eliminates the need for cookies. The company was formerly known as IncrediMail Ltd. and changed its name to Perion Network Ltd. in November 2011. Perion Network Ltd. was incorporated in 1999 and is headquartered in Holon, Israel.

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.