Rackspace Technology (NASDAQ:RXT – Get Free Report) and Zenvia (NASDAQ:ZENV – Get Free Report) are both small-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
Risk and Volatility
Rackspace Technology has a beta of 3.1, suggesting that its stock price is 210% more volatile than the S&P 500. Comparatively, Zenvia has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Rackspace Technology and Zenvia, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rackspace Technology | 1 | 1 | 0 | 0 | 1.50 |
| Zenvia | 1 | 0 | 0 | 0 | 1.00 |
Earnings & Valuation
This table compares Rackspace Technology and Zenvia”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rackspace Technology | $2.69 billion | 0.38 | -$225.80 million | ($0.65) | -6.18 |
| Zenvia | $1.10 billion | 0.02 | -$28.67 million | ($0.40) | -1.17 |
Zenvia has lower revenue, but higher earnings than Rackspace Technology. Rackspace Technology is trading at a lower price-to-earnings ratio than Zenvia, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
82.5% of Rackspace Technology shares are owned by institutional investors. Comparatively, 49.2% of Zenvia shares are owned by institutional investors. 2.3% of Rackspace Technology shares are owned by insiders. Comparatively, 78.4% of Zenvia shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Rackspace Technology and Zenvia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rackspace Technology | -5.88% | N/A | -1.81% |
| Zenvia | -10.62% | -14.36% | -6.52% |
Summary
Rackspace Technology beats Zenvia on 9 of the 13 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 Zenvia
Zenvia Inc. provides customer experience communications platform which empowers businesses to create unique journeys for their end-customers along their life cycle across range of B2C verticals. Zenvia Inc. is based in S?O PAULO.
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