Rackspace Technology (RXT) Competitors

Rackspace Technology (NASDAQ:RXT) and Rapid7 (NASDAQ:RPD) are both small-cap computer software companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, media sentiment, dividends, profitability, valuation and risk.

Which has more risk & volatility, RXT or RPD?

Rackspace Technology has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500. Comparatively, Rapid7 has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Is RXT or RPD more profitable?

Rapid7 has a net margin of 3.41% compared to Rackspace Technology's net margin of -13.85%. Rapid7's return on equity of 149.12% beat Rackspace Technology's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Rackspace Technology	-13.85%	N/A	-1.47%
Rapid7	3.41%	149.12%	3.54%

Does the media refer more to RXT or RPD?

In the previous week, Rapid7 had 31 more articles in the media than Rackspace Technology. MarketBeat recorded 46 mentions for Rapid7 and 15 mentions for Rackspace Technology. Rapid7's average media sentiment score of 0.37 beat Rackspace Technology's score of -0.03 indicating that Rapid7 is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Rackspace Technology	2 Very Positive mention(s)	2 Positive mention(s)	8 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
Rapid7	4 Very Positive mention(s)	6 Positive mention(s)	10 Neutral mention(s)	12 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do insiders & institutionals believe in RXT or RPD?

82.5% of Rackspace Technology shares are held by institutional investors. Comparatively, 95.7% of Rapid7 shares are held by institutional investors. 2.9% of Rackspace Technology shares are held by insiders. Comparatively, 2.4% of Rapid7 shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Which has stronger earnings & valuation, RXT or RPD?

Rapid7 has lower revenue, but higher earnings than Rackspace Technology. Rackspace Technology is trading at a lower price-to-earnings ratio than Rapid7, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rackspace Technology	$2.74B	0.11	-$858.20M	-$1.62	-0.75
Rapid7	$844.01M	1.61	$25.53M	$0.41	51.07

Do analysts recommend RXT or RPD?

Rackspace Technology currently has a consensus target price of $1.58, indicating a potential upside of 30.17%. Rapid7 has a consensus target price of $27.67, indicating a potential upside of 32.12%. Given Rapid7's stronger consensus rating and higher possible upside, analysts plainly believe Rapid7 is more favorable than Rackspace Technology.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rackspace Technology	1 Sell rating(s)	4 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.80
Rapid7	1 Sell rating(s)	13 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.26

Summary

Rapid7 beats Rackspace Technology on 14 of the 17 factors compared between the two stocks.