Head to Head Survey: Rackspace Technology (NASDAQ:RXT) vs. Tiga Acquisition (NYSE:TINV)

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

Institutional & Insider Ownership

82.5% of Rackspace Technology shares are held by institutional investors. Comparatively, 54.5% of Tiga Acquisition shares are held by institutional investors. 2.9% of Rackspace Technology shares are held by company insiders. Comparatively, 4.5% of Tiga Acquisition shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Rackspace Technology and Tiga Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rackspace Technology	-31.51%	N/A	-1.77%
Tiga Acquisition	N/A	-36.88%	-2.91%

Risk & Volatility

Rackspace Technology has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500. Comparatively, Tiga Acquisition has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Rackspace Technology and Tiga Acquisition, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rackspace Technology	1	2	0	0	1.67
Tiga Acquisition	0	0	0	0	0.00

Rackspace Technology currently has a consensus target price of $1.63, indicating a potential upside of 31.72%. Given Rackspace Technology’s stronger consensus rating and higher possible upside, research analysts clearly believe Rackspace Technology is more favorable than Tiga Acquisition.

Valuation and Earnings

This table compares Rackspace Technology and Tiga Acquisition”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	$2.71 billion	0.11	-$837.80 million	($1.28)	-0.97
Tiga Acquisition	N/A	N/A	$23.19 million	N/A	N/A

Tiga Acquisition has lower revenue, but higher earnings than Rackspace Technology.

Summary

Rackspace Technology beats Tiga Acquisition on 7 of the 10 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 Tiga Acquisition

Tiga Acquisition Corp. does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. The company was incorporated in 2020 and is headquartered in Singapore.