Reviewing Ntt Data (OTCMKTS:NTDTY) & Rackspace Technology (NASDAQ:RXT)

Ntt Data (OTCMKTS:NTDTY) and Rackspace Technology (NASDAQ:RXT) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Risk and Volatility

Ntt Data has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Rackspace Technology has a beta of 2.13, meaning that its stock price is 113% more volatile than the S&P 500.

Insider and Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ntt Data	3.06%	4.98%	1.86%
Rackspace Technology	-9.43%	N/A	-1.55%

Analyst Ratings

This is a breakdown of recent ratings for Ntt Data and Rackspace Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ntt Data	0	0	0	0	0.00
Rackspace Technology	2	4	0	0	1.67

Rackspace Technology has a consensus target price of $1.51, indicating a potential upside of 46.84%. Given Rackspace Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Rackspace Technology is more favorable than Ntt Data.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ntt Data	$30.46 billion	1.10	$940.20 million	$0.68	35.29
Rackspace Technology	$2.69 billion	0.09	-$858.20 million	($1.08)	-0.95

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

Summary

Ntt Data beats Rackspace Technology on 8 of the 13 factors compared between the two stocks.

About Ntt Data

NTT DATA Group Corporation provides IT and business services worldwide. It offers cloud, cybersecurity, data and intelligence, salesforce, SAP, ServiceNow, and application development and management, as well as 5G services. The company also provides consulting, industry solutions, business process services, and IT modernization and managed services. It serves automotive, healthcare, life sciences, media, banking, and insurance industries. The company was formerly known as NTT DATA Corporation. NTT DATA Group Corporation was founded in 1988 and is headquartered in Tokyo, Japan. NTT DATA Group Corporation operates as a subsidiary of Nippon Telegraph and Telephone Corporation.

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.