Rackspace Technology (NASDAQ:RXT) vs. Clikia (OTCMKTS:CLKA) Financial Analysis

Clikia (OTCMKTS:CLKA) and Rackspace Technology (NASDAQ:RXT) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clikia	N/A	N/A	-$540,000.00	N/A	N/A
Rackspace Technology	$2.74 billion	0.12	-$837.80 million	($3.88)	-0.36

Clikia has higher earnings, but lower revenue than Rackspace Technology.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Clikia and Rackspace Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clikia	0	0	0	0	0.00
Rackspace Technology	1	1	0	0	1.50

Rackspace Technology has a consensus target price of $1.65, suggesting a potential upside of 19.57%. Given Rackspace Technology’s stronger consensus rating and higher possible upside, analysts plainly believe Rackspace Technology is more favorable than Clikia.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clikia	N/A	N/A	N/A
Rackspace Technology	-31.51%	N/A	-1.77%

Risk & Volatility

Clikia has a beta of 3, suggesting that its stock price is 200% more volatile than the S&P 500. Comparatively, Rackspace Technology has a beta of 2.12, suggesting that its stock price is 112% more volatile than the S&P 500.

Insider and Institutional Ownership

82.5% of Rackspace Technology shares are owned by institutional investors. 2.0% of Rackspace Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Rackspace Technology beats Clikia on 5 of the 9 factors compared between the two stocks.

About Clikia

Clikia Corp., through its subsidiary, Maison Luxe LLC, engages in retailing luxury goods. It primarily focuses on offering fine timepieces and jewelry on wholesale and business-to-consumer basis. The company is based in Baton Rouge, Louisiana.

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.