Rapid7, Inc. (RPD) vs Rackspace Technology, Inc. (RXT)

Rapid7, Inc. and Rackspace Technology, Inc. are both Software Infrastructure companies. Rapid7, Inc. and Rackspace Technology, Inc. are of similar size ($881.6M and $811.8M). Rackspace Technology, Inc. has negative trailing earnings, so its P/E is not meaningful; Rapid7, Inc. trades at 40.7×. Rackspace Technology, Inc. grew revenue faster over the last twelve months: 0.34% against 0.07%. Rapid7, Inc. has the higher net margin (2.35% vs −5.88%) and the higher return on invested capital (0.00% vs −3.17%). Across the 19 metrics below, Rapid7, Inc. leads on 15 and Rackspace Technology, Inc. on 4.

Valuation

Metric RPD RXT Software Infrastructure median
P/E 40.68 n/m 28.38
P/S 0.99 0.26 2.98
P/B 4.30 n/m 2.93
Price to free cash flow 6.58 17.26 16.28
EV/EBITDA 7.40 13.67 13.92
EV/Sales 0.52 1.38 2.90
Earnings yield 2.46% (22.97%) 0.14%
Free cash flow yield 15.20% 5.79% 1.24%

Profitability

Metric RPD RXT Software Infrastructure median
Gross margin 69.30% 17.92% 61.00%
Operating margin 1.24% (3.26%) 0.00%
Net margin 2.35% (5.88%) 0.00%
Free cash flow margin 15.01% 1.52% 1.67%
Return on equity 14.03% 13.25% 0.60%
Return on assets 1.19% (5.64%) 0.00%
Return on invested capital 0.00% (3.17%) 0.00%

Growth

Metric RPD RXT Software Infrastructure median
Revenue growth (TTM) 0.07% 0.34% 13.41%
EPS growth (last fiscal year) (10.00%) 75.26% 27.10%
Revenue growth, 5-year CAGR 15.88% (0.16%) 15.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RPD RXT Software Infrastructure median
Debt to equity 1.50 (2.44) 0.05
Current ratio 0.80 0.76 1.55
Net debt to EBITDA 6.82 11.17 0.08

Dividend

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

Size

Metric RPD RXT Software Infrastructure median
Market cap 881.60m 811.77m 752.37m

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