Backblaze, Inc. (BLZE) vs Rackspace Technology, Inc. (RXT)

Backblaze, Inc. and Rackspace Technology, Inc. are both Software Infrastructure companies. Rackspace Technology, Inc. is the larger, with a market value of $1.1B against $836.0M — 1.3× the size. Backblaze, Inc. grew revenue faster over the last twelve months: 13.9% against 0.34%. Rackspace Technology, Inc. has the higher net margin (−5.88% vs −13.1%) and the higher return on invested capital (−3.17% vs −16.5%). Across the 19 metrics below, Rackspace Technology, Inc. leads on 12 and Backblaze, Inc. on 7.

Valuation

Metric BLZE RXT Software Infrastructure median
P/E n/m n/m 28.02
P/S 5.13 0.37 3.07
P/B 9.06 n/m 3.36
Price to free cash flow 76.92 24.34 17.12
EV/EBITDA 98.88 14.74 14.91
EV/Sales 5.04 1.49 3.03
Earnings yield (2.58%) (16.29%) 0.13%
Free cash flow yield 1.30% 4.11% 1.15%

Profitability

Metric BLZE RXT Software Infrastructure median
Gross margin 61.97% 17.92% 61.23%
Operating margin (11.61%) (3.26%) 0.00%
Net margin (13.07%) (5.88%) 0.00%
Free cash flow margin 9.98% 1.52% 1.67%
Return on equity (24.29%) 13.25% 0.59%
Return on assets (9.97%) (5.64%) 0.00%
Return on invested capital (16.49%) (3.17%) 0.00%

Growth

Metric BLZE RXT Software Infrastructure median
Revenue growth (TTM) 13.85% 0.34% 13.41%
EPS growth (last fiscal year) 58.56% 75.26% —
Revenue growth, 5-year CAGR 22.08% (0.16%) 15.81%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BLZE RXT Software Infrastructure median
Debt to equity 0.34 (2.44) 0.06
Current ratio 1.00 0.76 1.55
Net debt to EBITDA (15.29) 11.17 0.08

Dividend

Metric BLZE RXT Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric BLZE RXT Software Infrastructure median
Market cap 835.96m 1.07b 835.96m

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