Comparing EPAM Systems and Rigetti Computing: A Stock Analysis

EPAM Systems (NYSE:EPAM) and Rigetti Computing (NASDAQ:RGTI) are both companies in the technology sector, but which one stands out as the better investment? This article will evaluate these two firms based on several crucial factors, including valuation, earnings, analyst recommendations, institutional ownership, profitability, risk levels, and dividends offered.

Valuation and Earnings

To start our comparison, we will look at the revenue, earnings per share (EPS), and valuation metrics for both companies.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPAM Systems	$4.64 billion	3.04	$417.08 million	$7.70	32.24
Rigetti Computing	$11.89 million	151.51	-$75.11 million	($0.38)	-24.66

From the data, it's clear that EPAM Systems outperforms Rigetti Computing in terms of both revenue and earnings. Although Rigetti has a lower price-to-earnings ratio compared to EPAM, it is still in the red financially.

Risk & Volatility

When considering investment risks, EPAM Systems has a beta of 1.49, which means its stock is 49% more volatile than the S&P 500 index. In contrast, Rigetti Computing has a much higher beta of 2.72, suggesting it is 172% more volatile than the market.

Profitability

Next, we will look at profitability by comparing net margins, return on equity, and return on assets:

	Net Margins	Return on Equity	Return on Assets
EPAM Systems	9.68%	14.92%	11.91%
Rigetti Computing	-509.58%	-51.56%	-37.78%

EPAM Systems demonstrates healthier profitability metrics, indicating a strong ability to generate revenue relative to its costs compared to Rigetti Computing.

Analyst Ratings

The following analysis summarizes recent analyst ratings for the two companies:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPAM Systems	0	6	14	0	2.70
Rigetti Computing	0	0	5	0	3.00

Currently, the consensus target price for EPAM Systems is $272.20, with a potential upside of 9.64%. On the other hand, Rigetti Computing has a target price of $4.80, representing a potential downside of 48.77%. This suggests that analysts view EPAM Systems as a more attractive investment option.

Institutional & Insider Ownership

Institutional ownership is another important factor to consider:

EPAM Systems has robust institutional ownership at 91.6%, while Rigetti Computing has a lower institutional ownership of 35.4%. Insider ownership is also lower at Rigetti with just 2.8% compared to 4.3% in EPAM Systems. High institutional ownership typically indicates confidence in a company's future performance, as seen with EPAM Systems.

Conclusion

In summary, EPAM Systems exhibits stronger performance across 11 of the 14 criteria compared to Rigetti Computing. It appears to be the superior choice for investors looking for a strong tech stock.

About EPAM Systems

EPAM Systems, Inc. is a global provider of digital platform engineering and software development services. Founded in 1993 and headquartered in Newtown, Pennsylvania, the company delivers various services including custom software development, infrastructure management, and consulting across sectors such as finance, healthcare, and media.

About Rigetti Computing

Rigetti Computing, Inc. specializes in the design and manufacturing of quantum computers. Founded in 2013 and based in Berkeley, California, the company is involved in developing quantum processors and cloud-based quantum computing services for various applications.

EPAM, Rigetti, stock