ONESPAN INC (OSPN) vs Rackspace Technology, Inc. (RXT)

ONESPAN INC and Rackspace Technology, Inc. are both Software Infrastructure companies. ONESPAN INC is the larger, with a market value of $808.0M against $606.6M — 1.3× the size. Rackspace Technology, Inc. has negative trailing earnings, so its P/E is not meaningful; ONESPAN INC trades at 11.9×. ONESPAN INC grew revenue faster over the last twelve months: 4.88% against 0.34%. ONESPAN INC has the higher net margin (27.5% vs −5.88%) and the higher return on invested capital (12.0% vs −3.17%). Across the 19 metrics below, ONESPAN INC leads on 13 and Rackspace Technology, Inc. on 6.

Valuation

Metric OSPN RXT Software Infrastructure median
P/E 11.86 n/m 24.43
P/S 3.22 0.22 2.81
P/B 2.90 n/m 2.88
Price to free cash flow 18.33 14.64 17.94
EV/EBITDA 13.24 13.28 14.51
EV/Sales 3.04 1.34 2.91
Earnings yield 8.43% (27.08%) 0.00%
Free cash flow yield 5.46% 6.83% 0.49%

Profitability

Metric OSPN RXT Software Infrastructure median
Gross margin 74.26% 17.92% 57.45%
Operating margin 17.90% (3.26%) 0.00%
Net margin 27.52% (5.88%) 0.00%
Free cash flow margin 17.56% 1.52% 0.00%
Return on equity 26.85% 13.25% 0.00%
Return on assets 18.76% (5.64%) 0.00%
Return on invested capital 11.98% (3.17%) 0.00%

Growth

Metric OSPN RXT Software Infrastructure median
Revenue growth (TTM) 4.88% 0.34% 14.28%
EPS growth (last fiscal year) 28.77% 75.26% 18.26%
Revenue growth, 5-year CAGR 2.43% (0.16%) 16.15%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric OSPN RXT Software Infrastructure median
Debt to equity 0.03 (2.44) 0.02
Current ratio 1.35 0.76 1.53
Net debt to EBITDA (1.15) 11.17 0.05

Dividend

Metric OSPN RXT Software Infrastructure median
Dividend yield 2.32% — 1.06%
Payout ratio 0.28 — 0.29

Size

Metric OSPN RXT Software Infrastructure median
Market cap 808.00m 606.60m 661.51m

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