Sify Technologies (NASDAQ:SIFY) vs. Rackspace Technology (NASDAQ:RXT) Financial Comparison

Rackspace Technology (NASDAQ:RXT) and Sify Technologies (NASDAQ:SIFY) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares Rackspace Technology and Sify Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rackspace Technology	-27.94%	N/A	-1.73%
Sify Technologies	-0.08%	-0.40%	-0.14%

Volatility & Risk

Rackspace Technology has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, Sify Technologies has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Institutional & Insider Ownership

82.5% of Rackspace Technology shares are owned by institutional investors. Comparatively, 0.6% of Sify Technologies shares are owned by institutional investors. 2.0% of Rackspace Technology shares are owned by insiders. Comparatively, 77.0% of Sify Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Rackspace Technology and Sify Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rackspace Technology	$2.96 billion	0.21	-$837.80 million	($3.49)	-0.77
Sify Technologies	$36.51 billion	0.00	$590,000.00	N/A	N/A

Sify Technologies has higher revenue and earnings than Rackspace Technology.

Analyst Recommendations

This is a summary of recent ratings for Rackspace Technology and Sify Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rackspace Technology	1	4	1	0	2.00
Sify Technologies	0	0	0	0	0.00

Rackspace Technology currently has a consensus target price of $2.47, suggesting a potential downside of 7.96%. Given Rackspace Technology’s stronger consensus rating and higher probable upside, research analysts clearly believe Rackspace Technology is more favorable than Sify Technologies.

Summary

Rackspace Technology beats Sify Technologies 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 Sify Technologies

Sify Technologies Limited offers ICT solutions and services in India and internationally. It operates through Network Centric Services, Data Center Services, and Digital Services segments. The company offers internet, internet protocol, multi-protocol label switching, virtual private network, SDWAN, managed Wi-Fi, internet of things, wholesale and retail voice, dedicated internet access, and proactive monitoring and management of the network and devices. It provides co-location services; and managed hosting services, such as storage, back-up management, performance monitoring, infrastructure monitoring and management, network availability, server load balancing, managed shared firewall, web server log reporting, and remote and smart hands services. In addition, it offers managed network services; EDGE services; cloud and managed services, including infrastructure as a service, platform as a service, virtual private data center, computing services, IT platform, backup and recovery solution, and content delivery network; remote and onsite infrastructure managed services; and managed security services. Further, the company provides technology integration services; application integration services, which includes talent management, supply chain management, web portal solutions content services, portal development and maintenance, eLearning, digital signature, SAP, Microsoft, Oracle services. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. Sify Technologies Limited was incorporated in 1995 and is headquartered in Chennai, India. Sify Technologies Limited is a subsidiary of Ramanand Core Investment Company Private Limited.