Rackspace Technology (NASDAQ:RXT – Get Free Report) and Trump Media & Technology Group (NASDAQ:DJT – Get Free Report) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.
Earnings and Valuation
This table compares Rackspace Technology and Trump Media & Technology Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rackspace Technology | $2.77 billion | 0.24 | -$837.80 million | ($3.49) | -0.83 |
| Trump Media & Technology Group | $3.62 million | 1,668.83 | -$400.86 million | N/A | N/A |
Trump Media & Technology Group has lower revenue, but higher earnings than Rackspace Technology.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Rackspace Technology | -27.94% | N/A | -1.73% |
| Trump Media & Technology Group | N/A | -103.05% | -75.54% |
Analyst Recommendations
This is a breakdown of recent ratings for Rackspace Technology and Trump Media & Technology Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rackspace Technology | 1 | 4 | 1 | 0 | 2.00 |
| Trump Media & Technology Group | 0 | 0 | 0 | 0 | 0.00 |
Rackspace Technology currently has a consensus price target of $2.47, suggesting a potential downside of 14.35%. Given Rackspace Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Rackspace Technology is more favorable than Trump Media & Technology Group.
Insider and Institutional Ownership
82.5% of Rackspace Technology shares are owned by institutional investors. Comparatively, 4.3% of Trump Media & Technology Group shares are owned by institutional investors. 2.0% of Rackspace Technology shares are owned by insiders. Comparatively, 14.8% of Trump Media & Technology Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility and Risk
Rackspace Technology has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500. Comparatively, Trump Media & Technology Group has a beta of 5.16, meaning that its stock price is 416% more volatile than the S&P 500.
Summary
Rackspace Technology beats Trump Media & Technology Group on 7 of the 12 factors compared between the two stocks.
About Rackspace Technology
Rackspace Technology, Inc. operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services. It also helps customers establish governance, operational, and architectural frameworks to mitigate risks and reduce inefficiencies to manage costs, achieve industry-specific compliance objectives, and enhance security. In addition, the company offers managed applications, including running large-scale SaaS applications for customers on its and public cloud infrastructure; managed security services in the areas of security threat assessment and prevention, threat detection and response, rapid remediation, governance, and risk and compliance assistance across multiple cloud platforms, as well as privacy and data protection services, including detailed access restrictions and reporting; data services; and professional services related to designing and implementing application, security, and data services. Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.
About Trump Media & Technology Group
Trump Media & Technology Group Corp. operates as a social media and technology company. Its brands include TRUTH Social, TMTG+ and TMTG News. The company is headquartered in Sarasota, FL.
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