Consensus Cloud Solutions, Inc. (CCSI) vs Rackspace Technology, Inc. (RXT)

Consensus Cloud Solutions, Inc. and Rackspace Technology, Inc. are both Software Infrastructure companies. Consensus Cloud Solutions, Inc. is the larger, with a market value of $668.3M against $606.6M — 1.1× the size. Rackspace Technology, Inc. has negative trailing earnings, so its P/E is not meaningful; Consensus Cloud Solutions, Inc. trades at 7.2×. Consensus Cloud Solutions, Inc. grew revenue faster over the last twelve months: 1.45% against 0.34%. Consensus Cloud Solutions, Inc. has the higher net margin (26.7% vs −5.88%) and the higher return on invested capital (18.6% vs −3.17%). Across the 20 metrics below, Consensus Cloud Solutions, Inc. leads on 15 and Rackspace Technology, Inc. on 5.

Valuation

Metric CCSI RXT Software Infrastructure median
P/E 7.23 n/m 24.43
P/S 1.89 0.22 2.81
P/B 16.14 n/m 2.88
Price to free cash flow 5.80 14.64 17.94
EV/EBITDA 6.65 13.28 14.51
EV/Sales 3.18 1.34 2.91
Earnings yield 13.82% (27.08%) 0.00%
Free cash flow yield 17.24% 6.83% 0.49%

Profitability

Metric CCSI RXT Software Infrastructure median
Gross margin 80.24% 17.92% 57.45%
Operating margin 41.80% (3.26%) 0.00%
Net margin 26.69% (5.88%) 0.00%
Free cash flow margin 32.61% 1.52% 0.00%
Return on equity 1,254.76% 13.25% 0.00%
Return on assets 14.14% (5.64%) 0.00%
Return on invested capital 18.61% (3.17%) 0.00%

Growth

Metric CCSI RXT Software Infrastructure median
Revenue growth (TTM) 1.45% 0.34% 14.28%
EPS growth (last fiscal year) (5.84%) 75.26% 18.26%
Revenue growth, 5-year CAGR 1.09% (0.16%) 16.15%
Net income growth, 5-year CAGR (11.18%) 0.00% 0.00%

Health

Metric CCSI RXT Software Infrastructure median
Debt to equity 13.36 (2.44) 0.02
Current ratio 1.90 0.76 1.53
Net debt to EBITDA 2.83 11.17 0.05

Dividend

Metric CCSI RXT Software Infrastructure median
Dividend yield — — 1.06%
Payout ratio — — 0.29

Size

Metric CCSI RXT Software Infrastructure median
Market cap 668.31m 606.60m 661.51m

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