Comparing Sify Technologies (NASDAQ:SIFY) & Rackspace Technology (NASDAQ:RXT)

Sify Technologies (NASDAQ:SIFY) and Rackspace Technology (NASDAQ:RXT) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sify Technologies and Rackspace Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sify Technologies	0	0	0	0	0.00
Rackspace Technology	1	4	1	0	2.00

Rackspace Technology has a consensus price target of $2.47, suggesting a potential downside of 6.92%. Given Rackspace Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Rackspace Technology is more favorable than Sify Technologies.

Institutional and Insider Ownership

0.6% of Sify Technologies shares are owned by institutional investors. Comparatively, 82.5% of Rackspace Technology shares are owned by institutional investors. 77.0% of Sify Technologies shares are owned by company insiders. Comparatively, 2.0% of Rackspace Technology shares are owned by company 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 Sify Technologies and Rackspace Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sify Technologies	-0.08%	-0.40%	-0.14%
Rackspace Technology	-27.94%	N/A	-1.73%

Earnings & Valuation

This table compares Sify Technologies and Rackspace Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sify Technologies	$430.48 million	0.24	$590,000.00	$0.04	85.75
Rackspace Technology	$2.77 billion	0.22	-$837.80 million	($3.49)	-0.76

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

Volatility and Risk

Sify Technologies has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Rackspace Technology has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.

About Sify Technologies

Sify Technologies Limited offers ICT solutions and services in India and internationally. It operates through Network Centric Services, Data Center Services, and Digital Services segments. The company offers internet, internet protocol, multi-protocol label switching, virtual private network, SDWAN, managed Wi-Fi, internet of things, wholesale and retail voice, dedicated internet access, and proactive monitoring and management of the network and devices. It provides co-location services; and managed hosting services, such as storage, back-up management, performance monitoring, infrastructure monitoring and management, network availability, server load balancing, managed shared firewall, web server log reporting, and remote and smart hands services. In addition, it offers managed network services; EDGE services; cloud and managed services, including infrastructure as a service, platform as a service, virtual private data center, computing services, IT platform, backup and recovery solution, and content delivery network; remote and onsite infrastructure managed services; and managed security services. Further, the company provides technology integration services; application integration services, which includes talent management, supply chain management, web portal solutions content services, portal development and maintenance, eLearning, digital signature, SAP, Microsoft, Oracle services. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. Sify Technologies Limited was incorporated in 1995 and is headquartered in Chennai, India. Sify Technologies Limited is a subsidiary of Ramanand Core Investment Company Private Limited.

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.