WallStSmart

Apple Inc (AAPL)vsRackspace Technology Inc (RXT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Apple Inc generates 16120% more annual revenue ($435.62B vs $2.69B). AAPL leads profitability with a 27.0% profit margin vs -8.4%. AAPL appears more attractively valued with a PEG of 2.43. AAPL earns a higher WallStSmart Score of 65/100 (C+).

AAPL

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 10.0Value: 4.3Quality: 5.5
Piotroski: 7/9Altman Z: 2.42

RXT

Hold

40

out of 100

Grade: D

Growth: 2.7Profit: 2.0Value: 4.0Quality: 5.0
Piotroski: 4/9Altman Z: -1.00

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAPL6 strengths · Avg: 9.5/10
Market CapQuality
$3.98T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
152.0%10/10

Every $100 of equity generates 152 in profit

Operating MarginProfitability
35.4%10/10

Strong operational efficiency at 35.4%

Free Cash FlowQuality
$51.55B10/10

Generating 51.6B in free cash flow

Profit MarginProfitability
27.0%9/10

Keeps 27 of every $100 in revenue as profit

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

RXT1 strengths · Avg: 10.0/10
Debt/EquityHealth
-2.7610/10

Conservative balance sheet, low leverage

Areas to Watch

AAPL4 concerns · Avg: 3.3/10
PEG RatioValuation
2.434/10

Expensive relative to growth rate

P/E RatioValuation
34.4x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.033/10

Elevated debt levels

Price/BookValuation
45.2x2/10

Trading at 45.2x book value

RXT4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$377.78M3/10

Smaller company, higher risk/reward

PEG RatioValuation
4.932/10

Expensive relative to growth rate

Return on EquityProfitability
-352.8%2/10

ROE of -352.8% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : AAPL

The strongest argument for AAPL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.0% and operating margin at 35.4%. Revenue growth of 15.7% demonstrates continued momentum.

Bull Case : RXT

The strongest argument for RXT centers on Debt/Equity.

Bear Case : AAPL

The primary concerns for AAPL are PEG Ratio, P/E Ratio, Debt/Equity.

Bear Case : RXT

The primary concerns for RXT are EPS Growth, Market Cap, PEG Ratio.

Key Dynamics to Monitor

AAPL profiles as a growth stock while RXT is a turnaround play — different risk/reward profiles.

RXT carries more volatility with a beta of 1.99 — expect wider price swings.

AAPL is growing revenue faster at 15.7% — sustainability is the question.

AAPL generates stronger free cash flow (51.6B), providing more financial flexibility.

Bottom Line

AAPL scores higher overall (65/100 vs 40/100), backed by strong 27.0% margins and 15.7% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Apple Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Apple Inc. is an American multinational technology company that specializes in consumer electronics, computer software, and online services. Apple is the world's largest technology company by revenue (totalling $274.5 billion in 2020) and, since January 2021, the world's most valuable company. As of 2021, Apple is the world's fourth-largest PC vendor by unit sales, and fourth-largest smartphone manufacturer. It is one of the Big Five American information technology companies, along with Amazon, Google, Microsoft, and Facebook.

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Rackspace Technology Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Rackspace Technology, Inc. is a global multi-cloud technology services company. The company is headquartered in San Antonio, Texas.

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