Head-To-Head Analysis: PodcastOne (NASDAQ:PODC) versus Rackspace Technology (NASDAQ:RXT)

Rackspace Technology (NASDAQ:RXT) and PodcastOne (NASDAQ:PODC) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Rackspace Technology and PodcastOne, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rackspace Technology	1	4	1	0	2.00
PodcastOne	0	0	3	0	3.00

Rackspace Technology currently has a consensus target price of $2.47, indicating a potential downside of 13.75%. PodcastOne has a consensus target price of $4.75, indicating a potential upside of 111.11%. Given PodcastOne’s stronger consensus rating and higher probable upside, analysts plainly believe PodcastOne is more favorable than Rackspace Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rackspace Technology	-27.94%	N/A	-1.73%
PodcastOne	-14.08%	-42.22%	-28.14%

Volatility & Risk

Rackspace Technology has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, PodcastOne has a beta of -0.8, meaning that its share price is 180% less volatile than the S&P 500.

Institutional & Insider Ownership

82.5% of Rackspace Technology shares are owned by institutional investors. Comparatively, 2.9% of PodcastOne shares are owned by institutional investors. 2.0% of Rackspace Technology shares are owned by insiders. Comparatively, 7.8% of PodcastOne shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Rackspace Technology and PodcastOne”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rackspace Technology	$2.96 billion	0.22	-$837.80 million	($3.49)	-0.82
PodcastOne	$43.30 million	1.29	-$14.73 million	($0.29)	-7.76

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

Summary

PodcastOne beats Rackspace Technology on 8 of the 14 factors compared between the two stocks.

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.

About PodcastOne

PodcastOne, Inc. operates as a podcast platform and publisher. The company offers its content to audiences through podcasting distribution platforms, including its website, Apple Podcasts, Spotify, Amazon Music, and others. It also produces vodcasts, branded podcasts, merchandise, and live events. In addition, the company builds, owns, and operates LaunchPadOne, a self-publishing podcast platform. The company was formerly known as Courtside Group, Inc. and changed its name to PodcastOne, Inc. in September 2023. PodcastOne, Inc. was founded in 2013 and is based in Beverly Hills, California. PodcastOne, Inc. is a subsidiary of LiveOne, Inc.