i3 Verticals, Inc. (IIIV) vs Rackspace Technology, Inc. (RXT)

i3 Verticals, Inc. and Rackspace Technology, Inc. are both Software Infrastructure companies. Rackspace Technology, Inc. is the larger, with a market value of $606.6M against $509.6M — 1.2× the size. Rackspace Technology, Inc. has negative trailing earnings, so its P/E is not meaningful; i3 Verticals, Inc. trades at 47.5×. i3 Verticals, Inc. grew revenue faster over the last twelve months: 4.09% against 0.34%. i3 Verticals, Inc. has the higher net margin (3.90% vs −5.88%) and the higher return on invested capital (0.72% vs −3.17%). Across the 19 metrics below, i3 Verticals, Inc. leads on 13 and Rackspace Technology, Inc. on 6.

Valuation

Metric IIIV RXT Software Infrastructure median
P/E 47.50 n/m 24.52
P/S 1.69 0.23 2.78
P/B 0.92 n/m 2.84
Price to free cash flow 8.80 15.37 18.22
EV/EBITDA 14.17 13.39 13.98
EV/Sales 2.32 1.35 2.92
Earnings yield 2.11% (25.79%) 0.00%
Free cash flow yield 11.36% 6.51% 0.37%

Profitability

Metric IIIV RXT Software Infrastructure median
Gross margin 100.00% 17.92% 57.91%
Operating margin 2.72% (3.26%) 0.00%
Net margin 3.90% (5.88%) 0.00%
Free cash flow margin 19.22% 1.52% 0.00%
Return on equity 1.87% 13.25% 0.00%
Return on assets 1.36% (5.64%) 0.00%
Return on invested capital 0.72% (3.17%) 0.00%

Growth

Metric IIIV RXT Software Infrastructure median
Revenue growth (TTM) 4.09% 0.34% 14.42%
EPS growth (last fiscal year) (84.78%) 75.26% 17.35%
Revenue growth, 5-year CAGR 7.26% (0.16%) 16.15%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric IIIV RXT Software Infrastructure median
Debt to equity 0.29 (2.44) 0.02
Current ratio 1.21 0.76 1.53
Net debt to EBITDA (1.93) 11.17 0.05

Dividend

Metric IIIV RXT Software Infrastructure median
Dividend yield — — 1.04%
Payout ratio — — 0.29

Size

Metric IIIV RXT Software Infrastructure median
Market cap 509.59m 606.60m 606.60m

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