Financial Review: Kanzhun (NASDAQ:BZ) vs. Rackspace Technology (NASDAQ:RXT)

Rackspace Technology (NASDAQ:RXT) and Kanzhun (NASDAQ:BZ) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Earnings and Valuation

This table compares Rackspace Technology and Kanzhun’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rackspace Technology	$2.96 billion	0.12	-$837.80 million	($3.92)	-0.42
Kanzhun	$838.33 million	8.52	$154.82 million	$0.33	57.67

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rackspace Technology	-28.33%	-10.18%	-0.74%
Kanzhun	18.28%	8.44%	6.53%

Institutional & Insider Ownership

82.5% of Rackspace Technology shares are held by institutional investors. Comparatively, 60.7% of Kanzhun shares are held by institutional investors. 1.0% of Rackspace Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Rackspace Technology has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500. Comparatively, Kanzhun has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Rackspace Technology and Kanzhun, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rackspace Technology	2	4	2	0	2.00
Kanzhun	0	1	7	0	2.88

Rackspace Technology presently has a consensus target price of $2.31, suggesting a potential upside of 41.79%. Kanzhun has a consensus target price of $20.38, suggesting a potential upside of 7.29%. Given Rackspace Technology’s higher possible upside, equities analysts plainly believe Rackspace Technology is more favorable than Kanzhun.

Summary

Kanzhun beats Rackspace Technology on 8 of the 13 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 Kanzhun

Kanzhun Limited engages in the provision of online recruitment solutions in the People's Republic of China. The company offers its recruitment solutions through a mobile app under the BOSS Zhipin brand name. Its recruitment platform assists the recruitment process between job seekers and employers for enterprises, and corporations. The company was founded in 2013 and is headquartered in Beijing, the People's Republic of China.