Critical Contrast: Earlyworks (NASDAQ:ELWS) versus Rigetti Computing (NASDAQ:RGTI)

Earlyworks (NASDAQ:ELWS) and Rigetti Computing (NASDAQ:RGTI) are both small-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Earlyworks	$1.14 million	8.50	-$2.13 million	N/A	N/A
Rigetti Computing	$12.01 million	38.43	-$75.11 million	($0.38)	-6.32

Earlyworks has higher earnings, but lower revenue than Rigetti Computing.

Risk & Volatility

Earlyworks has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Rigetti Computing has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Earlyworks	N/A	N/A	N/A
Rigetti Computing	-509.58%	-51.56%	-37.78%

Insider and Institutional Ownership

0.5% of Earlyworks shares are held by institutional investors. Comparatively, 35.4% of Rigetti Computing shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Earlyworks and Rigetti Computing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Earlyworks	0	0	0	0	0.00
Rigetti Computing	0	0	4	0	3.00

Rigetti Computing has a consensus price target of $3.00, suggesting a potential upside of 25.00%. Given Rigetti Computing’s stronger consensus rating and higher probable upside, analysts plainly believe Rigetti Computing is more favorable than Earlyworks.

Summary

Rigetti Computing beats Earlyworks on 7 of the 11 factors compared between the two stocks.

About Earlyworks

Earlyworks Co., Ltd operates as a blockchain-based technology company in Japan. The company builds products, deliver services, and develop solutions based on its proprietary Grid Ledger System to leverage blockchain technology in various business settings, including advertisement tracking, online visitor management, and sales of non-fungible tokens. It also provides software and system development services; consulting and solution services; blockchain system solution planning; and proposal, design, and development planning services. The company serves the information technology, shipping, real estate, entertainment, cosmetics, and chemical products sectors. Earlyworks Co., Ltd was incorporated in 2018 and is based in Tokyo, Japan.

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.