Head to Head Comparison: Rigetti Computing (NASDAQ:RGTI) vs. Lakeshore Acquisition II (NASDAQ:LBBB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rigetti Computing	-625.42%	-59.51%	-41.47%
Lakeshore Acquisition II	N/A	N/A	N/A

Institutional and Insider Ownership

35.4% of Rigetti Computing shares are held by institutional investors. Comparatively, 56.6% of Lakeshore Acquisition II shares are held by institutional investors. 2.6% of Rigetti Computing shares are held by company insiders. Comparatively, 36.2% of Lakeshore Acquisition II shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Rigetti Computing has a beta of 2.43, meaning that its stock price is 143% more volatile than the S&P 500. Comparatively, Lakeshore Acquisition II has a beta of -0.34, meaning that its stock price is 134% less volatile than the S&P 500.

Valuation and Earnings

This table compares Rigetti Computing and Lakeshore Acquisition II’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	$12.01 million	14.29	-$75.11 million	($0.58)	-1.86
Lakeshore Acquisition II	N/A	N/A	N/A	N/A	N/A

Lakeshore Acquisition II has lower revenue, but higher earnings than Rigetti Computing.

Analyst Recommendations

This is a summary of recent ratings and target prices for Rigetti Computing and Lakeshore Acquisition II, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rigetti Computing	0	0	3	0	3.00
Lakeshore Acquisition II	0	0	0	0	N/A

Rigetti Computing currently has a consensus target price of $3.17, suggesting a potential upside of 193.21%. Given Rigetti Computing’s higher possible upside, equities research analysts plainly believe Rigetti Computing is more favorable than Lakeshore Acquisition II.

Summary

Lakeshore Acquisition II beats Rigetti Computing on 5 of the 9 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 Lakeshore Acquisition II

Lakeshore Acquisition II Corp. does not have significant operations. It focuses on effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization, or similar business combination with one or more businesses or entities. The company was incorporated in 2021 and is based in New York, New York.