Grindr (NYSE:GRND – Get Free Report) and Rackspace Technology (NASDAQ:RXT – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings for Grindr and Rackspace Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grindr | 0 | 0 | 3 | 0 | 3.00 |
| Rackspace Technology | 1 | 4 | 1 | 0 | 2.00 |
Grindr presently has a consensus target price of $17.67, indicating a potential upside of 17.86%. Rackspace Technology has a consensus target price of $2.34, indicating a potential downside of 15.16%. Given Grindr’s stronger consensus rating and higher possible upside, research analysts plainly believe Grindr is more favorable than Rackspace Technology.
Volatility and Risk
Earnings & Valuation
This table compares Grindr and Rackspace Technology”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grindr | $259.69 million | 10.16 | -$55.77 million | ($0.44) | -34.07 |
| Rackspace Technology | $2.96 billion | 0.21 | -$837.80 million | ($3.72) | -0.74 |
Grindr has higher earnings, but lower revenue than Rackspace Technology. Grindr is trading at a lower price-to-earnings ratio than Rackspace Technology, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Grindr and Rackspace Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grindr | -25.67% | -234.28% | 7.68% |
| Rackspace Technology | -28.79% | N/A | -1.55% |
Insider & Institutional Ownership
7.2% of Grindr shares are held by institutional investors. Comparatively, 82.5% of Rackspace Technology shares are held by institutional investors. 76.4% of Grindr shares are held by company insiders. Comparatively, 2.0% of Rackspace Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Grindr beats Rackspace Technology on 9 of the 14 factors compared between the two stocks.
About Grindr
Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.
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.
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