OneConnect Financial Technology (NYSE: OCFT) v. Rackspace Technology (NASDAQ: RXT) Head-ToHead Survey


OneConnect Financial Technology (NYSE: OCFT – Get Rating) and Rackspace Technology (NASDAQ: RXT – Get Rating) are both small capitalized business services companies, but which is the better business? We will compare the two businesses based on the strength of their profits, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Analyst ratings

This is a summary of the latest recommendations and pricing targets for OneConnect Financial Technology and Rackspace Technology provided by MarketBeat.

Sales ratings Keep ratings Buy ratings Strong buying ratings Rating
OneConnect Financial Technology 1 2 2 0 2.20
Rackspace technology 0 5 4 0 2.44

OneConnect Financial Technology currently has a consensus target of $ 9.50, showing a potential increase of 573.76%. Rackspace Technology has a consensus target of $ 14.17, a potential increase of 50.07%. Given the higher possible rise of OneConnect Financial Technology, analysts clearly believe that OneConnect Financial Technology is more favorable than Rackspace Technology.

Valuation and profits

This table compares gross earnings, earnings per share (EPS) and the estimates of OneConnect Financial Technology and Rackspace Technology.

Gross income Price / sale ratio Net income Earnings per share Price / profit ratio
OneConnect Financial Technology $ 640.51 million 0.86 -198.66 million dollars ($ 0.53) -2.66
Rackspace technology $ 3.01 billion 0.66 -218.30 million dollars ($ 0.92) -10.26

OneConnect Financial Technology has higher profits but lower revenues than Rackspace Technology. Rackspace Technology is trading at a lower price / earnings ratio than OneConnect Financial Technology, indicating that it is currently the more affordable of the two stocks.

Volatility and risk

OneConnect Financial Technology has a beta of 0.4, which shows that its share price is 60% less variable than the S&P 500. By comparison, Rackspace Technology has a beta of 0.8, which shows that its share price is 20% less variable than the S&P 500.

Institutional and internal ownership

14.9% of the shares of OneConnect Financial Technology are owned by institutional investors. By comparison, 95.9% of Rackspace Technology shares are owned by institutional investors. 0.8% of Rackspace Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, big money managers and donations believe that stocks are ready for long-term growth.

profitability

This table compares the net margins of OneConnect Financial Technology and Rackspace Technology, return on equity and return on assets.

Net margins Return on equity Return on assets
OneConnect Financial Technology -31.00% -29.06% -13.81%
Rackspace technology -6.30% 14.99% 3.20%

Summary

Rackspace Technology beats OneConnect Financial Technology on 9 of the 14 factors compared between the two stocks.

About OneConnect’s financial technology (Get an estimate)

OneConnect Financial Technology Co., Ltd. provides cloud-based Fintech solutions and online information and operational support services for financial institutions in the People’s Republic of China. It offers digital retail banking, digital commercial banking, digital car insurance and life insurance and services for customers with artificial intelligence, as well as sales management, risk management and support services. The company also operates a gamma core banking system, a customer-oriented solution; a digitalized management platform that offers a digital infrastructure for financial institutions to manage various aspects of their business, including data, smart operations, comprehensive risk management and asset and liability management, as well as accounting, staffing and office management; Gamma FinCloud, an open PaaS and IaaS platform for ready-to-integrate financial technology components; and Blockchain network as a service. In addition, he manages Regtech, a comprehensive regulatory solution that helps regulators automate and digitize their operations; and offers asset management and consulting services. The company serves clients in the financial services industry, including banking, insurance and other financial institutions. It has a strategic agreement with the local financial supervision administration of Hainan to develop smart financial services and smart supervision services in the island province of Hainan, as well as the financial sector in the free trade port of Hainan. OneConnect Financial Technology Co., Ltd. was founded in 2015 and is headquartered in Shenzhen, People’s Republic of China.

About Rackspace Technology (Get an estimate)

Rackspace Technology, Inc. operates as a multi-cloud technology services company worldwide. It works through multi-cloud services and applications and cross-platform segments. The company’s Multicloud Services segment provides public and private cloud-managed services that enable customers to define, manage and optimize the right infrastructure, platforms and services; and professional services related to the design and construction of multi-cloud solutions and cloud applications. Its segment for applications and cross-platforms includes managed applications; managed security services in the areas of security threat assessment and prevention, threat detection and response, rapid response, risk management and compliance and compliance across multiple cloud platforms, as well as privacy and data protection services, including detailed restrictions on access and reporting; data services; and professional services related to application design and implementation, security and data services. Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.



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