VeriSign (NASDAQ:VRSN) versus Rackspace Technology (NASDAQ:RXT) Head to Head Review

Rackspace Technology (NASDAQ:RXT) and VeriSign (NASDAQ:VRSN) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Analyst Ratings

This is a summary of current recommendations for Rackspace Technology and VeriSign, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rackspace Technology	1	1	0	0	1.50
VeriSign	0	1	4	1	3.00

Rackspace Technology presently has a consensus target price of $4.00, suggesting a potential upside of 2.04%. VeriSign has a consensus target price of $333.00, suggesting a potential upside of 10.25%. Given VeriSign’s stronger consensus rating and higher possible upside, analysts plainly believe VeriSign is more favorable than Rackspace Technology.

Profitability

This table compares Rackspace Technology and VeriSign’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%
VeriSign	49.76%	-39.20%	58.32%

Insider & Institutional Ownership

82.5% of Rackspace Technology shares are owned by institutional investors. Comparatively, 92.9% of VeriSign shares are owned by institutional investors. 2.3% of Rackspace Technology shares are owned by company insiders. Comparatively, 0.6% of VeriSign shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Rackspace Technology and VeriSign”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rackspace Technology	$2.70 billion	0.37	-$225.80 million	($0.65)	-6.03
VeriSign	$1.66 billion	16.46	$825.70 million	$9.22	32.76

VeriSign has lower revenue, but higher earnings than Rackspace Technology. Rackspace Technology is trading at a lower price-to-earnings ratio than VeriSign, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Rackspace Technology has a beta of 3.05, suggesting that its stock price is 205% more volatile than the S&P 500. Comparatively, VeriSign has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Summary

VeriSign beats Rackspace Technology on 11 of the 15 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 VeriSign

VeriSign, Inc., together with its subsidiaries, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names worldwide. The company enables the security, stability, and resiliency of internet infrastructure and services, including providing root zone maintainer services, operating two of thirteen internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which supports global e-commerce. It operates directory for .name and .cc; and back-end systems for .edu, domain names. VeriSign, Inc. was incorporated in 1995 and is headquartered in Reston, Virginia.