Equinix vs Rackspace Technology Which Is More Lucrative?

Equinix and Rackspace Technology are two prominent players in the technology sector, particularly within the cloud and data center industries. Equinix is known for its global network of interconnected data centers and focus on providing secure and reliable infrastructure services to businesses worldwide. Rackspace Technology, on the other hand, offers a wide range of cloud solutions and managed services to help companies optimize their IT operations. Both companies have experienced growth in recent years, but face competition and challenges in a rapidly evolving market landscape. Investors looking to capitalize on the growth potential of the technology sector may consider evaluating Equinix and Rackspace Technology stocks for their investment portfolios.

Equinix or Rackspace Technology?

When comparing Equinix and Rackspace Technology, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Equinix and Rackspace Technology.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Equinix has a dividend yield of 1.75%, while Rackspace Technology has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Equinix reports a 5-year dividend growth of 9.70% year and a payout ratio of 154.57%. On the other hand, Rackspace Technology reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Equinix P/E ratio at 88.06 and Rackspace Technology's P/E ratio at -0.73. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Equinix P/B ratio is 6.85 while Rackspace Technology's P/B ratio is -0.60.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Equinix has seen a 5-year revenue growth of 0.38%, while Rackspace Technology's is -0.91%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Equinix's ROE at 8.34% and Rackspace Technology's ROE at 116.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $972.73 for Equinix and $2.48 for Rackspace Technology. Over the past year, Equinix's prices ranged from $684.14 to $994.03, with a yearly change of 45.30%. Rackspace Technology's prices fluctuated between $1.45 and $3.41, with a yearly change of 135.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.