Quantum computing stands at the forefront of technological innovation, with Rigetti Computing, Inc. (RGTI) and D-Wave Quantum Inc. (QBTS) leading the charge in this dynamic industry. Both companies develop advanced quantum hardware and cloud-based services, targeting overlapping markets such as AI, materials science, and cybersecurity. In this article, I will analyze their strategies and potentials to help you decide which stock might be the most promising addition to your investment portfolio.
Table of contents
Companies Overview
I will begin the comparison between Rigetti Computing, Inc. and D-Wave Quantum Inc. by providing an overview of these two companies and their main differences.
Rigetti Computing, Inc. Overview
Rigetti Computing, Inc. is an integrated systems company focused on building quantum computers and the superconducting quantum processors that power them. Founded in 2013 and based in Berkeley, California, Rigetti integrates its machines into public, private, or hybrid clouds through its Quantum Cloud Services platform. The company operates within the computer hardware industry and has a market cap of approximately 7.8B USD.
D-Wave Quantum Inc. Overview
D-Wave Quantum Inc. develops and delivers quantum computing systems, software, and services globally. Headquartered in Burnaby, Canada, it offers a range of products including its fifth-generation quantum computer Advantage and cloud-based services like Leap, supporting multiple industries such as AI, life sciences, and financial services. D-Wave operates in the computer hardware sector with a market cap near 9.7B USD.
Key similarities and differences
Both companies operate in the technology sector focusing on quantum computing hardware and cloud services, serving high-tech markets. While Rigetti emphasizes integrated quantum systems and cloud integration, D-Wave offers a broader portfolio including software tools and professional services that guide enterprise adoption. Rigetti is US-based with fewer employees (137) compared to Canada-based D-Wave’s 216, and D-Wave’s market cap is higher by roughly 2B USD.
Income Statement Comparison
This table compares the key income statement metrics for Rigetti Computing, Inc. and D-Wave Quantum Inc. for the fiscal year 2024, providing an overview of their financial performance.
| Metric | Rigetti Computing, Inc. (RGTI) | D-Wave Quantum Inc. (QBTS) |
|---|---|---|
| Market Cap | 7.79B | 9.75B |
| Revenue | 10.8M | 8.8M |
| EBITDA | -190.8M | -138.1M |
| EBIT | -197.7M | -140.0M |
| Net Income | -201.0M | -143.9M |
| EPS | -1.09 | -0.75 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Rigetti Computing, Inc.
Rigetti Computing’s revenue showed an overall growth of 94.67% from 2020 to 2024 but declined by 10.14% in the most recent year, accompanied by a worsening net income trend. Gross margin remained favorable at 52.8%, yet EBIT and net margins were deeply negative and deteriorated further in 2024. The company faced increasing operating expenses and significant net losses, with EPS declining sharply year-over-year.
D-Wave Quantum Inc.
D-Wave Quantum posted a 71.07% revenue increase over the 2020-2024 period, with a modest 0.79% growth in 2024. Gross margin improved to a favorable 63.02%, though EBIT and net margins stayed substantially negative. Despite some operational efficiencies reflected in improved gross profit growth and stable operating expenses relative to revenue, net income and EPS declined, highlighting persistent losses.
Which one has the stronger fundamentals?
Both companies report unfavorable overall income statement evaluations with persistent net losses and negative margins. Rigetti shows stronger revenue growth over the period but experienced sharper declines in profitability and margins recently. D-Wave exhibits higher gross margins and some operational improvements in 2024 but also faces significant net income deterioration. Neither company demonstrates clearly stronger fundamentals based on the income statement data.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Rigetti Computing, Inc. (RGTI) and D-Wave Quantum Inc. (QBTS) based on their most recent fiscal year data as of 2024.
| Ratios | Rigetti Computing, Inc. (RGTI) | D-Wave Quantum Inc. (QBTS) |
|---|---|---|
| ROE | -158.8% | -229.7% |
| ROIC | -24.9% | -45.0% |
| P/E | -14.0 | -11.2 |
| P/B | 22.3 | 25.8 |
| Current Ratio | 17.4 | 6.14 |
| Quick Ratio | 17.4 | 6.08 |
| D/E | 0.07 | 0.61 |
| Debt-to-Assets | 3.1% | 19.2% |
| Interest Coverage | -21.0 | -19.8 |
| Asset Turnover | 0.038 | 0.044 |
| Fixed Asset Turnover | 0.205 | 0.775 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
Rigetti Computing, Inc.
Rigetti’s financial ratios show significant weaknesses, with unfavorable net margin (-1862.72%) and return on equity (-158.77%), indicating poor profitability and shareholder returns. The high price-to-book ratio (22.26) and current ratio (17.42) raise concerns about valuation and asset utilization. The company does not pay dividends, likely due to ongoing losses and reinvestment in R&D.
D-Wave Quantum Inc.
D-Wave Quantum’s ratios also reveal challenges, including a negative net margin (-1629.99%) and return on equity (-229.67%), reflecting ongoing unprofitability. Its moderate debt-to-assets (19.2%) is favorable, but other metrics like high price-to-book (25.76) and low asset turnover suggest operational inefficiencies. No dividends are paid, consistent with its focus on growth and R&D investment.
Which one has the best ratios?
Both companies face unfavorable profitability and operational ratios, with Rigetti showing slightly more favorable debt metrics and lower leverage. D-Wave has a better current ratio but a higher price-to-book ratio. Overall, neither company demonstrates strong financial health, and both appear focused on growth over immediate shareholder returns.
Strategic Positioning
This section compares the strategic positioning of Rigetti Computing, Inc. and D-Wave Quantum Inc., focusing on market position, key segments, and exposure to technological disruption:
Rigetti Computing, Inc.
- Smaller market cap at 7.8B USD; faces competitive pressure in quantum hardware sector.
- Focused on integrated quantum computers, superconducting processors, and cloud quantum services.
- Operates in advanced quantum computing hardware with cloud integration; disruption risk inherent in tech evolution.
D-Wave Quantum Inc.
- Larger market cap at 9.7B USD; competes globally in quantum computing systems and software.
- Offers quantum computers, software suites, professional services, and cloud access for various industries.
- Provides hybrid quantum-classical solutions with cloud-based real-time quantum access, addressing multiple industries.
Rigetti Computing, Inc. vs D-Wave Quantum Inc. Positioning
Rigetti pursues a concentrated approach centered on integrated quantum hardware and cloud access, while D-Wave adopts a diversified strategy including hardware, software, and professional services. Rigetti’s narrower focus may limit market reach but allows specialization, whereas D-Wave’s broader offerings target multiple sectors.
Which has the best competitive advantage?
Both companies are currently shedding value despite growing profitability, indicating weak economic moats. Rigetti exhibits a stronger ROIC growth trend but still operates slightly unfavorably like D-Wave, suggesting cautious evaluation of competitive advantage.
Stock Comparison
The stock price movements of Rigetti Computing, Inc. (RGTI) and D-Wave Quantum Inc. (QBTS) over the past 12 months reveal significant bullish trends with notable deceleration and recent downward corrections.
Trend Analysis
Rigetti Computing, Inc. (RGTI) exhibited a strong bullish trend over the past year with a 1788.0% price increase, although the growth rate has decelerated. Recent months show a 49.12% decline, indicating a short-term bearish correction.
D-Wave Quantum Inc. (QBTS) posted an even more pronounced bullish trend with a 2480.73% increase over the past year, also with deceleration. Its recent decline is milder at 26.61%, reflecting a less steep short-term pullback.
Comparing the two, QBTS delivered the highest market performance overall with a larger annual price gain, despite both experiencing recent downward adjustments.
Target Prices
Analysts present a clear consensus on target prices for Rigetti Computing, Inc. and D-Wave Quantum Inc. based on recent evaluations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Rigetti Computing, Inc. | 50 | 18 | 35.83 |
| D-Wave Quantum Inc. | 46 | 26 | 38.88 |
The consensus target prices for both companies suggest potential upside compared to current stock prices of $23.60 for Rigetti and $28.12 for D-Wave Quantum, indicating positive analyst expectations in the quantum computing sector.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Rigetti Computing, Inc. (RGTI) and D-Wave Quantum Inc. (QBTS):
Rating Comparison
RGTI Rating
- Rating: C, evaluated as very favorable overall.
- Discounted Cash Flow Score: 1, indicating very unfavorable valuation outlook.
- ROE Score: 1, showing very unfavorable efficiency in generating profit.
- ROA Score: 1, reflecting very unfavorable asset utilization.
- Debt To Equity Score: 4, considered favorable financial stability.
- Overall Score: 2, a moderate assessment of financial standing.
QBTS Rating
- Rating: C-, evaluated as very favorable overall.
- Discounted Cash Flow Score: 1, indicating very unfavorable valuation outlook.
- ROE Score: 1, showing very unfavorable efficiency in generating profit.
- ROA Score: 1, reflecting very unfavorable asset utilization.
- Debt To Equity Score: 4, considered favorable financial stability.
- Overall Score: 1, a very unfavorable assessment of financial standing.
Which one is the best rated?
Based strictly on the provided data, RGTI holds a higher overall score of 2 compared to QBTS’s 1. Both share identical unfavorable scores in key profitability metrics, but RGTI’s moderate overall score positions it as better rated.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Rigetti Computing, Inc. and D-Wave Quantum Inc.:
Rigetti Computing, Inc. Scores
- Altman Z-Score: 101.7, indicating a safe zone for bankruptcy risk
- Piotroski Score: 2, categorized as very weak financial strength
D-Wave Quantum Inc. Scores
- Altman Z-Score: 28.1, indicating a safe zone for bankruptcy risk
- Piotroski Score: 4, categorized as average financial strength
Which company has the best scores?
Rigetti Computing has a much higher Altman Z-Score, suggesting stronger bankruptcy safety, but a weaker Piotroski Score. D-Wave Quantum shows moderate financial strength with an average Piotroski Score but a lower Altman Z-Score than Rigetti.
Grades Comparison
Here is a comparison of the recent grades assigned to Rigetti Computing, Inc. and D-Wave Quantum Inc.:
Rigetti Computing, Inc. Grades
This table summarizes recent grades and actions from notable grading companies for Rigetti Computing, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B. Riley Securities | Maintain | Neutral | 2025-11-12 |
| Benchmark | Maintain | Buy | 2025-11-12 |
| B. Riley Securities | Downgrade | Neutral | 2025-11-03 |
| Benchmark | Maintain | Buy | 2025-10-07 |
| B. Riley Securities | Maintain | Buy | 2025-09-22 |
| Benchmark | Maintain | Buy | 2025-08-13 |
| Needham | Maintain | Buy | 2025-08-04 |
| B. Riley Securities | Maintain | Buy | 2025-07-23 |
| Benchmark | Maintain | Buy | 2025-05-15 |
| Needham | Maintain | Buy | 2025-05-14 |
Overall, Rigetti Computing’s grades mostly indicate a “Buy” rating, with one recent downgrade to “Neutral” by B. Riley Securities, showing some caution.
D-Wave Quantum Inc. Grades
Below are the recent grades and actions from recognized grading companies for D-Wave Quantum Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Benchmark | Maintain | Buy | 2025-11-10 |
| Rosenblatt | Maintain | Buy | 2025-11-07 |
| Canaccord Genuity | Maintain | Buy | 2025-11-07 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-11-07 |
| B. Riley Securities | Maintain | Buy | 2025-09-22 |
| Piper Sandler | Maintain | Overweight | 2025-08-08 |
| Benchmark | Maintain | Buy | 2025-08-04 |
| B. Riley Securities | Maintain | Buy | 2025-07-23 |
| B. Riley Securities | Maintain | Buy | 2025-06-18 |
| Benchmark | Maintain | Buy | 2025-06-18 |
D-Wave Quantum consistently holds strong “Buy” and “Overweight” grades, reflecting a steady positive outlook from multiple firms.
Which company has the best grades?
D-Wave Quantum Inc. has received consistently stronger grades, including multiple “Overweight” ratings, compared to Rigetti Computing’s mostly “Buy” and some “Neutral” grades. This suggests a generally more favorable analyst sentiment for D-Wave, which may influence investor confidence and portfolio positioning.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses of Rigetti Computing, Inc. (RGTI) and D-Wave Quantum Inc. (QBTS) based on their latest financial and operational data.
| Criterion | Rigetti Computing, Inc. (RGTI) | D-Wave Quantum Inc. (QBTS) |
|---|---|---|
| Diversification | Limited: Mainly quantum computing access and research services | Limited: Mainly professional services and product-related sales |
| Profitability | Negative net margin (-1862.7%), ROIC -24.9%, shedding value but ROIC improving | Negative net margin (-1630.0%), ROIC -45.0%, shedding value but ROIC improving |
| Innovation | Strong focus on quantum computing platform and research | Focus on quantum computing products and professional services |
| Global presence | Emerging, primarily US-based with growing quantum computing access | Emerging, similar regional presence and service expansion |
| Market Share | Small niche player in quantum computing access and research | Small niche player in quantum computing services and products |
Key takeaways: Both companies operate in the nascent quantum computing industry with limited diversification and negative profitability metrics indicating value destruction. However, they show improving ROIC trends, signaling potential for future profitability as innovation and market adoption progress. Investors should weigh growth potential against current financial risks.
Risk Analysis
Below is a comparative risk overview for Rigetti Computing, Inc. (RGTI) and D-Wave Quantum Inc. (QBTS) based on the latest 2024 data:
| Metric | Rigetti Computing, Inc. (RGTI) | D-Wave Quantum Inc. (QBTS) |
|---|---|---|
| Market Risk | High beta 1.69, volatile price range (5.95-58.15) | High beta 1.56, volatile price range (3.74-46.75) |
| Debt Level | Low debt-to-equity 0.07 (favorable) | Moderate debt-to-equity 0.61 (neutral) |
| Regulatory Risk | Moderate, US-based tech sector | Moderate, Canada-based with global exposure |
| Operational Risk | Low employee count (137), high operational leverage | Higher employee count (216), diversified service offerings |
| Environmental Risk | Standard for tech hardware | Standard for tech hardware |
| Geopolitical Risk | US market exposure, moderate | Canadian base with global operations, higher international risk |
The most impactful risks for both companies are market volatility and poor profitability metrics, with both showing unfavorable net margins and return on equity in 2024. Rigetti’s very low debt reduces financial risk, whereas D-Wave’s moderate leverage requires monitoring. Both operate in a highly innovative but nascent quantum computing sector, with operational execution and regulatory changes posing ongoing risks.
Which Stock to Choose?
Rigetti Computing, Inc. (RGTI) shows a declining income trend with unfavorable profitability and financial ratios, including negative return on equity and high net margin losses. Its low debt levels and strong quick ratio contrast with an overall unfavorable rating.
D-Wave Quantum Inc. (QBTS) presents slightly better income growth and profitability metrics but still faces negative returns and a high debt-to-equity ratio. Its financial ratios are mostly unfavorable, although its quick ratio and debt-to-assets ratio are favorable, with a similar very favorable overall rating.
For investors focused on value creation and stability, RGTI’s lower debt and improving ROIC trend might appear more attractive, whereas those prioritizing revenue growth could find QBTS’s higher market cap and recent gross profit growth more appealing, despite both companies exhibiting unfavorable financial health.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Rigetti Computing, Inc. and D-Wave Quantum Inc. to enhance your investment decisions:
