Paysign, Inc. (PAYS) vs Rackspace Technology, Inc. (RXT)

Paysign, Inc. and Rackspace Technology, Inc. are both Software Infrastructure companies. Paysign, Inc. and Rackspace Technology, Inc. are of similar size ($880.8M and $811.8M). Rackspace Technology, Inc. has negative trailing earnings, so its P/E is not meaningful; Paysign, Inc. trades at 52.9×. Paysign, Inc. grew revenue faster over the last twelve months: 46.8% against 0.34%. Paysign, Inc. has the higher net margin (15.7% vs −5.88%) and the higher return on invested capital (0.00% vs −3.17%). Across the 19 metrics below, Paysign, Inc. leads on 15 and Rackspace Technology, Inc. on 4.

Valuation

Metric PAYS RXT Software Infrastructure median
P/E 52.86 n/m 28.38
P/S 8.22 0.26 2.98
P/B 13.74 n/m 2.93
Price to free cash flow 12.24 17.26 16.28
EV/EBITDA 24.55 13.67 13.92
EV/Sales 6.46 1.38 2.90
Earnings yield 1.89% (22.97%) 0.14%
Free cash flow yield 8.17% 5.79% 1.24%

Profitability

Metric PAYS RXT Software Infrastructure median
Gross margin 61.00% 17.92% 61.00%
Operating margin 17.01% (3.26%) 0.00%
Net margin 15.67% (5.88%) 0.00%
Free cash flow margin 67.13% 1.52% 1.67%
Return on equity 30.82% 13.25% 0.60%
Return on assets 6.17% (5.64%) 0.00%
Return on invested capital 0.00% (3.17%) 0.00%

Growth

Metric PAYS RXT Software Infrastructure median
Revenue growth (TTM) 46.84% 0.34% 13.41%
EPS growth (last fiscal year) 85.71% 75.26% 27.10%
Revenue growth, 5-year CAGR 27.74% (0.16%) 15.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PAYS RXT Software Infrastructure median
Debt to equity 0.00 (2.44) 0.05
Current ratio 1.14 0.76 1.55
Net debt to EBITDA (10.52) 11.17 0.08

Dividend

Metric PAYS RXT Software Infrastructure median
Dividend yield — — 1.20%
Payout ratio — — 0.29

Size

Metric PAYS RXT Software Infrastructure median
Market cap 880.81m 811.77m 752.37m

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