Priority Technology Holdings, Inc. (PRTH) vs Rackspace Technology, Inc. (RXT)

Priority Technology Holdings, Inc. and Rackspace Technology, Inc. are both Software Infrastructure companies. Priority Technology Holdings, Inc. and Rackspace Technology, Inc. are of similar size ($649.1M and $606.6M). Rackspace Technology, Inc. has negative trailing earnings, so its P/E is not meaningful; Priority Technology Holdings, Inc. trades at 15.7×. Priority Technology Holdings, Inc. grew revenue faster over the last twelve months: 10.1% against 0.34%. Priority Technology Holdings, Inc. has the higher net margin (3.97% vs −5.88%) and the higher return on invested capital (10.1% vs −3.17%). Across the 20 metrics below, Priority Technology Holdings, Inc. leads on 15 and Rackspace Technology, Inc. on 5.

Valuation

Metric PRTH RXT Software Infrastructure median
P/E 15.72 n/m 24.43
P/S 0.62 0.22 2.81
P/B n/m n/m 2.88
Price to free cash flow 28.30 14.64 17.94
EV/EBITDA 7.22 13.28 14.51
EV/Sales 1.50 1.34 2.91
Earnings yield 6.36% (27.08%) 0.00%
Free cash flow yield 3.53% 6.83% 0.49%

Profitability

Metric PRTH RXT Software Infrastructure median
Gross margin 39.09% 17.92% 57.45%
Operating margin 13.22% (3.26%) 0.00%
Net margin 3.97% (5.88%) 0.00%
Free cash flow margin 13.13% 1.52% 0.00%
Return on equity (49.15%) 13.25% 0.00%
Return on assets 1.68% (5.64%) 0.00%
Return on invested capital 10.09% (3.17%) 0.00%

Growth

Metric PRTH RXT Software Infrastructure median
Revenue growth (TTM) 10.14% 0.34% 14.28%
EPS growth (last fiscal year) 319.35% 75.26% 18.26%
Revenue growth, 5-year CAGR 18.71% (0.16%) 16.15%
Net income growth, 5-year CAGR 16.76% 0.00% 0.00%

Health

Metric PRTH RXT Software Infrastructure median
Debt to equity (18.27) (2.44) 0.02
Current ratio 1.10 0.76 1.53
Net debt to EBITDA 4.59 11.17 0.05

Dividend

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

Size

Metric PRTH RXT Software Infrastructure median
Market cap 649.06m 606.60m 661.51m

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