Katapult Holdings, Inc. (KPLT) vs Rackspace Technology, Inc. (RXT)

Katapult Holdings, Inc. and Rackspace Technology, Inc. are both Software Infrastructure companies. Katapult Holdings, Inc. is the larger, with a market value of $837.5M against $606.6M — 1.4× the size. Rackspace Technology, Inc. has negative trailing earnings, so its P/E is not meaningful; Katapult Holdings, Inc. trades at 7.1×. Katapult Holdings, Inc. grew revenue faster over the last twelve months: 13.0% against 0.34%. Katapult Holdings, Inc. has the higher net margin (1.86% vs −5.88%) and the higher return on invested capital (17.2% vs −3.17%). Across the 18 metrics below, Katapult Holdings, Inc. leads on 14 and Rackspace Technology, Inc. on 4.

Valuation

Metric KPLT RXT Software Infrastructure median
P/E 7.11 n/m 24.43
P/S 0.18 0.22 2.81
P/B n/m n/m 2.88
Price to free cash flow n/m 14.64 17.94
EV/EBITDA 1.13 13.28 14.51
EV/Sales 0.66 1.34 2.91
Earnings yield 14.07% (27.08%) 0.00%
Free cash flow yield (7.25%) 6.83% 0.49%

Profitability

Metric KPLT RXT Software Infrastructure median
Gross margin 18.49% 17.92% 57.45%
Operating margin 1.27% (3.26%) 0.00%
Net margin 1.86% (5.88%) 0.00%
Free cash flow margin (1.29%) 1.52% 0.00%
Return on equity (12.44%) 13.25% 0.00%
Return on assets 5.82% (5.64%) 0.00%
Return on invested capital 17.21% (3.17%) 0.00%

Growth

Metric KPLT RXT Software Infrastructure median
Revenue growth (TTM) 12.96% 0.34% 14.28%
EPS growth (last fiscal year) 98.15% 75.26% 18.26%
Revenue growth, 5-year CAGR 3.37% (0.16%) 16.15%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric KPLT RXT Software Infrastructure median
Debt to equity (2.06) (2.44) 0.02
Current ratio 0.90 0.76 1.53
Net debt to EBITDA 0.33 11.17 0.05

Dividend

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

Size

Metric KPLT RXT Software Infrastructure median
Market cap 837.46m 606.60m 661.51m

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