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RXT vs CNXC
Revenue, margins, valuation, and 5-year total return — side by side.
Information Technology Services
RXT vs CNXC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Software - Infrastructure | Information Technology Services |
| Market Cap | $869M | $1.79B |
| Revenue (TTM) | $2.70B | $9.83B |
| Net Income (TTM) | $-146M | $-1.28B |
| Gross Margin | 18.5% | 33.3% |
| Operating Margin | -3.0% | 6.2% |
| Forward P/E | — | 2.2x |
| Total Debt | $3.28B | $4.64B |
| Cash & Equiv. | $106M | $327M |
RXT vs CNXC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | Nov 20 | May 26 | Return |
|---|---|---|---|
| Rackspace Technolog… (RXT) | 100 | 19.6 | -80.4% |
| Concentrix Corporat… (CNXC) | 100 | 31.8 | -68.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RXT vs CNXC
Each card shows where this stock fits in a portfolio — not just who wins on paper.
RXT is the clearest fit if your priority is quality and momentum.
- -5.4% margin vs CNXC's -13.0%
- +146.2% vs CNXC's -46.7%
- -5.2% ROA vs CNXC's -10.8%, ROIC -3.7% vs 5.6%
CNXC carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 5 yrs, beta 1.38, yield 5.6%
- Rev growth 2.2%, EPS growth -6.5%, 3Y rev CAGR 15.8%
- -61.0% 10Y total return vs RXT's -78.5%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 2.2% revenue growth vs RXT's -1.9% | |
| Value | Better valuation composite | |
| Quality / Margins | -5.4% margin vs CNXC's -13.0% | |
| Stability / Safety | Beta 1.38 vs RXT's 1.67 | |
| Dividends | 5.6% yield; 5-year raise streak; the other pay no meaningful dividend | |
| Momentum (1Y) | +146.2% vs CNXC's -46.7% | |
| Efficiency (ROA) | -5.2% ROA vs CNXC's -10.8%, ROIC -3.7% vs 5.6% |
RXT vs CNXC — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
RXT vs CNXC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
CNXC leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CNXC is the larger business by revenue, generating $9.8B annually — 3.6x RXT's $2.7B. RXT is the more profitable business, keeping -5.4% of every revenue dollar as net income compared to CNXC's -13.0%.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $2.7B | $9.8B |
| EBITDAEarnings before interest/tax | $162M | $773M |
| Net IncomeAfter-tax profit | -$146M | -$1.3B |
| Free Cash FlowCash after capex | $77M | $572M |
| Gross MarginGross profit ÷ Revenue | +18.5% | +33.3% |
| Operating MarginEBIT ÷ Revenue | -3.0% | +6.2% |
| Net MarginNet income ÷ Revenue | -5.4% | -13.0% |
| FCF MarginFCF ÷ Revenue | +2.8% | +5.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.9% | +4.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +109.7% | -14.9% |
Valuation Metrics
CNXC leads this category, winning 3 of 4 comparable metrics.
Valuation Metrics
On an enterprise value basis, CNXC's 4.8x EV/EBITDA is more attractive than RXT's 17.2x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $869M | $1.8B |
| Enterprise ValueMkt cap + debt − cash | $4.0B | $6.1B |
| Trailing P/EPrice ÷ TTM EPS | -3.71x | -1.25x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 2.17x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 17.20x | 4.84x |
| Price / SalesMarket cap ÷ Revenue | 0.32x | 0.18x |
| Price / BookPrice ÷ Book value/share | — | 0.58x |
| Price / FCFMarket cap ÷ FCF | 9.59x | 3.13x |
Profitability & Efficiency
RXT leads this category, winning 4 of 7 comparable metrics.
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), CNXC scores 5/9 vs RXT's 4/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | — | -33.2% |
| ROA (TTM)Return on assets | -5.2% | -10.8% |
| ROICReturn on invested capital | -3.7% | +5.6% |
| ROCEReturn on capital employed | -4.7% | +6.6% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 5 |
| Debt / EquityFinancial leverage | — | 1.69x |
| Net DebtTotal debt minus cash | $3.2B | $4.3B |
| Cash & Equiv.Liquid assets | $106M | $327M |
| Total DebtShort + long-term debt | $3.3B | $4.6B |
| Interest CoverageEBIT ÷ Interest expense | -2.03x | -3.07x |
Total Returns (Dividends Reinvested)
RXT leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in CNXC five years ago would be worth $1,974 today (with dividends reinvested), compared to $1,484 for RXT. Over the past 12 months, RXT leads with a +146.2% total return vs CNXC's -46.7%. The 3-year compound annual growth rate (CAGR) favors RXT at 36.3% vs CNXC's -30.0% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +261.4% | -36.5% |
| 1-Year ReturnPast 12 months | +146.2% | -46.7% |
| 3-Year ReturnCumulative with dividends | +153.2% | -65.7% |
| 5-Year ReturnCumulative with dividends | -85.2% | -80.3% |
| 10-Year ReturnCumulative with dividends | -78.5% | -61.0% |
| CAGR (3Y)Annualised 3-year return | +36.3% | -30.0% |
Risk & Volatility
Evenly matched — RXT and CNXC each lead in 1 of 2 comparable metrics.
Risk & Volatility
CNXC is the less volatile stock with a 1.38 beta — it tends to amplify market swings less than RXT's 1.67 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. RXT currently trades 76.2% from its 52-week high vs CNXC's 41.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.67x | 1.38x |
| 52-Week HighHighest price in past year | $4.62 | $62.14 |
| 52-Week LowLowest price in past year | $0.39 | $22.85 |
| % of 52W HighCurrent price vs 52-week peak | +76.2% | +41.0% |
| RSI (14)Momentum oscillator 0–100 | 68.7 | 36.1 |
| Avg Volume (50D)Average daily shares traded | 17.0M | 1.6M |
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates RXT as "Hold" and CNXC as "Buy". Consensus price targets imply 104.2% upside for CNXC (target: $52) vs -5.4% for RXT (target: $3). CNXC is the only dividend payer here at 5.59% yield — a key consideration for income-focused portfolios.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $3.33 | $52.00 |
| # AnalystsCovering analysts | 13 | 9 |
| Dividend YieldAnnual dividend ÷ price | — | +5.6% |
| Dividend StreakConsecutive years of raises | — | 5 |
| Dividend / ShareAnnual DPS | — | $1.42 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +10.5% |
CNXC leads in 2 of 6 categories (Income & Cash Flow, Valuation Metrics). RXT leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
RXT vs CNXC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is RXT or CNXC a better buy right now?
For growth investors, Concentrix Corporation (CNXC) is the stronger pick with 2.
2% revenue growth year-over-year, versus -1. 9% for Rackspace Technology, Inc. (RXT). Analysts rate Concentrix Corporation (CNXC) a "Buy" — based on 9 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — RXT or CNXC?
Over the past 5 years, Concentrix Corporation (CNXC) delivered a total return of -80.
3%, compared to -85. 2% for Rackspace Technology, Inc. (RXT). Over 10 years, the gap is even starker: CNXC returned -61. 0% versus RXT's -78. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — RXT or CNXC?
By beta (market sensitivity over 5 years), Concentrix Corporation (CNXC) is the lower-risk stock at 1.
38β versus Rackspace Technology, Inc. 's 1. 67β — meaning RXT is approximately 21% more volatile than CNXC relative to the S&P 500.
04Which is growing faster — RXT or CNXC?
By revenue growth (latest reported year), Concentrix Corporation (CNXC) is pulling ahead at 2.
2% versus -1. 9% for Rackspace Technology, Inc. (RXT). On earnings-per-share growth, the picture is similar: Rackspace Technology, Inc. grew EPS 75. 1% year-over-year, compared to -648. 8% for Concentrix Corporation. Over a 3-year CAGR, CNXC leads at 15. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
05Which has better profit margins — RXT or CNXC?
Rackspace Technology, Inc.
(RXT) is the more profitable company, earning -8. 4% net margin versus -13. 0% for Concentrix Corporation — meaning it keeps -8. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CNXC leads at 6. 2% versus -3. 7% for RXT. At the gross margin level — before operating expenses — CNXC leads at 35. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is RXT or CNXC more undervalued right now?
Analyst consensus price targets imply the most upside for CNXC: 104.
2% to $52. 00.
07Which pays a better dividend — RXT or CNXC?
In this comparison, CNXC (5.
6% yield) pays a dividend. RXT does not pay a meaningful dividend and should not be held primarily for income.
08Is RXT or CNXC better for a retirement portfolio?
For long-horizon retirement investors, Concentrix Corporation (CNXC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (5.
6% yield). Rackspace Technology, Inc. (RXT) carries a higher beta of 1. 67 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (CNXC: -61. 0%, RXT: -78. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between RXT and CNXC?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: RXT is a small-cap quality compounder stock; CNXC is a small-cap income-oriented stock. CNXC pays a dividend while RXT does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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