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RPAY vs RXT

RPAY
Repay Holdings Corporation
BEARISH
Price
$4.11
Market Cap
$359.4M
Sector
Technology
AI Confidence
85%
RXT
Rackspace Technology, Inc.
BEARISH
Price
$1.47
Market Cap
$363.0M
Sector
Technology
AI Confidence
95%

Valuation

P/E Ratio
RPAY
--
RXT
--
Forward P/E
RPAY
4.41
RXT
25.45
P/B Ratio
RPAY
0.69
RXT
-0.3
P/S Ratio
RPAY
1.16
RXT
0.14
EV/EBITDA
RPAY
9.73
RXT
15.23

Profitability

Gross Margin
RPAY
75.02%
RXT
19.22%
Operating Margin
RPAY
-5.7%
RXT
-0.79%
Profit Margin
RPAY
-83.01%
RXT
-8.41%
ROE
RPAY
-43.2%
RXT
--
ROA
RPAY
-0.54%
RXT
-1.41%

Growth

Revenue Growth
RPAY
0.4%
RXT
-0.4%
Earnings Growth
RPAY
--
RXT
--

Financial Health

Debt/Equity
RPAY
0.91
RXT
--
Current Ratio
RPAY
0.82
RXT
0.68
Quick Ratio
RPAY
0.63
RXT
0.5

Dividends

Dividend Yield
RPAY
--
RXT
--
Payout Ratio
RPAY
0.0%
RXT
0.0%

AI Verdict

RPAY BEARISH

RPAY exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and deteriorating operational efficiency. While the stock appears cheap on a Price-to-Book (0.69) and Forward P/E (4.41) basis, these metrics are overshadowed by a catastrophic -3320% YoY earnings collapse and a profit margin of -83.01%. Stagnant revenue growth (0.40%) and a current ratio below 1.0 (0.82) suggest significant liquidity risks and a lack of growth catalysts. Despite a bullish analyst consensus, the combination of a 0/100 technical trend and negative earnings surprises makes this a high-risk value trap.

Strengths
Strong Gross Margin (75.02%) indicating a viable core product
Low Price-to-Book ratio (0.69) suggesting the stock trades below liquidation value
Low Forward P/E (4.41) if earnings can be stabilized
Risks
Critical financial health (Piotroski F-Score 2/9)
Severe earnings volatility with a recent surprise of -4156.9%
Liquidity risk indicated by a Current Ratio of 0.82 and Quick Ratio of 0.63
RXT BEARISH

RXT exhibits severe financial distress, anchored by a weak Piotroski F-Score of 2/9 and a negative Price-to-Book ratio (-0.30), which indicates negative shareholder equity. The company faces a liquidity crisis with a current ratio of 0.68 and stagnant revenue growth (-0.40% YoY). While recent earnings have beaten lowered expectations, the long-term trajectory is catastrophic, evidenced by a 94.2% decline over five years. Combined with aggressive insider selling, the deterministic data suggests a high risk of insolvency or further devaluation.

Strengths
Extremely low Price-to-Sales ratio (0.14) suggests the market has already priced in significant failure
Positive gross margin (19.22%) indicates the core service still generates some value
Recent quarterly EPS surprises have been positive, suggesting a narrowing of losses
Risks
Negative shareholder equity (P/B of -0.30) is a critical solvency red flag
Poor liquidity with a current ratio of 0.68 and quick ratio of 0.50
Stagnant to negative revenue growth (-0.40% YoY) indicates a lack of market competitiveness

Compare Another Pair

RPAY vs RXT: Head-to-Head Comparison

This page compares Repay Holdings Corporation (RPAY) and Rackspace Technology, Inc. (RXT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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