Missile damage has a “soft damage limit” and a “hard damage limit” determined by a combination of the explosion-velocity-to-ship-velocity ratio (higher is better), explosion-radius-to-ship-signature-radius ratio (lower is better), and a hidden variable not shown in game but exposed in database and shown in 3rd party tools like pyfa called a Damage Reduction Factor (it only increases damage applied, so the name is misleading). All of this determines how much damage - up to and never exceeding 100% - is inflicted (turrets can inflict up to 300%). The hard damage limit is strictly determined by the radius ratio - if the ratio is less than 100%, then that % is the amount of damage that is applied. So a rage torpedo with a 774m explosion radius being used against a frigate with a 35m radius will inflict 4.5% damage even if the frigate was stationary, which is literally less than a T1 rocket after you math it out. This situation can be enhanced by increasing the precision of the missileboat (ie. lowering explosion radius somehow) and/or painting the target to increase its signature radius (perhaps the target uses an MWD/MJD to bloom its sig for the duration, etc). The precision math is such that rage/fury missiles often inflict less damage than even T1 (ie. non-Faction) missiles. This is also true of turret ammo where non-Faction T1 usually outperforms T2 in the absence of paints and webs in most situations, hence it is usually best not to use Fury/Rage missiles or T2 turret ammo solo since you don’t have fleetmates to help with webs and paints (though if your fit compensates for the precision penalties of T2 ammo, then you’ll be fine).
Actual Damage = Raw Damage * Precision. If your precision is far lower than your raw damage, your actual damage will suck. This is why, for example, Upwell structures with anti-subcapital launchers offer three missile sizes; the smaller missiles have lower raw damage but far superior precision, so their actual damage against small/fast craft will be far superior than using the larger missiles which offer more raw power but lack the necessary precision needed to contribute 100% or close to 100% damage. In EVE they say bigger isn’t always better; this is certainly true for ships, but it is even more true for missiles.