Analyzing Doximity (NASDAQ:DOCS) & Rigetti Computing (NASDAQ:RGTI)

Doximity (NASDAQ:DOCS) and Rigetti Computing (NASDAQ:RGTI) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

87.2% of Doximity shares are held by institutional investors. Comparatively, 35.4% of Rigetti Computing shares are held by institutional investors. 37.4% of Doximity shares are held by insiders. Comparatively, 2.8% of Rigetti Computing shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Doximity has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Rigetti Computing has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Doximity	36.60%	22.38%	18.99%
Rigetti Computing	-509.58%	-51.56%	-37.78%

Earnings and Valuation

This table compares Doximity and Rigetti Computing”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Doximity	$475.42 million	29.54	$147.58 million	$1.00	75.24
Rigetti Computing	$12.01 million	189.88	-$75.11 million	($0.38)	-31.21

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Doximity and Rigetti Computing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	0	11	8	2	2.57
Rigetti Computing	0	0	5	0	3.00

Doximity currently has a consensus price target of $64.22, suggesting a potential downside of 14.64%. Rigetti Computing has a consensus price target of $5.70, suggesting a potential downside of 51.94%. Given Doximity’s higher probable upside, equities research analysts clearly believe Doximity is more favorable than Rigetti Computing.

Summary

Doximity beats Rigetti Computing on 13 of the 15 factors compared between the two stocks.

About Doximity

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company's platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up to date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical manufacturers and healthcare systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

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.