Blackbaud (NASDAQ:BLKB) and RealPage (NASDAQ:RP) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Valuation & Earnings

This table compares Blackbaud and RealPage’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blackbaud $848.61 million 5.27 $44.84 million $1.87 48.61
RealPage $869.48 million 6.51 $34.72 million $1.10 54.33

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

Volatility and Risk

Blackbaud has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, RealPage has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Blackbaud and RealPage, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blackbaud 1 7 0 0 1.88
RealPage 0 1 5 0 2.83

Blackbaud presently has a consensus target price of $90.17, indicating a potential downside of 0.81%. RealPage has a consensus target price of $66.60, indicating a potential upside of 11.45%. Given RealPage’s stronger consensus rating and higher possible upside, analysts plainly believe RealPage is more favorable than Blackbaud.

Institutional & Insider Ownership

89.2% of RealPage shares are held by institutional investors. 1.6% of Blackbaud shares are held by insiders. Comparatively, 17.1% of RealPage 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.

Profitability

This table compares Blackbaud and RealPage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blackbaud 3.04% 20.51% 4.59%
RealPage 4.48% 9.97% 5.12%

Dividends

Blackbaud pays an annual dividend of $0.48 per share and has a dividend yield of 0.5%. RealPage does not pay a dividend. Blackbaud pays out 25.7% of its earnings in the form of a dividend.

Summary

RealPage beats Blackbaud on 12 of the 16 factors compared between the two stocks.

Blackbaud Company Profile

Blackbaud, Inc. provides cloud software solutions to nonprofits, foundations, companies, education institutions, healthcare organizations, individual change agents, and other charitable giving entities. The company offers fundraising and relationship management solutions and services, including Blackbaud Raiser's Edge NXT, Blackbaud CRM, Blackbaud Luminate CRM, Blackbaud eTapestry, Blackbaud TeamRaiser, everydayhero, Blackbaud Peer-to-Peer Fundraising, and Blackbaud Guided Fundraising; and marketing and engagement solutions, such as Blackbaud Luminate Online, Blackbaud Online Express, Blackbaud NetCommunity, Blackbaud Attentive.ly, and Blackbaud School Website System. It also provides Blackbaud Financial Edge NXT, Blackbaud Smart Tuition, and Blackbaud Smart Aid financial management solutions and services; and Blackbaud Grantmaking, Blackbaud Award Management, FIMS, and Blackbaud Outcomes grant and award management solutions. In addition, the company offers organizational and program management solutions and services comprising Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, Blackbaud Altru, and Blackbaud Church Management; and Blackbaud Employee Giving and Blackbaud Employee Volunteering, and YourCause corporate social responsibility solutions. Further, it provides Blackbaud's SKY Intelligence analytics solutions, as well as donor acquisition, prospect research, data enrichment, and benchmarking and performance management solutions and services; and Blackbaud Merchant Services and Blackbaud Purchase Cards payment services. Additionally, the company offers customer support and maintenance, professional and managed, and training services. It has operations primarily in the United States, the United Kingdom, Canada, and Australia. The company was founded in 1981 and is headquartered in Charleston, South Carolina.

RealPage Company Profile

RealPage, Inc. provides software and data analytics for the real estate industry in the United States. It offers OneSite, a property management solution for multi-family, affordable property, rural housing, military housing, senior and student living, and commercial property types; and Propertyware, an on demand property management system for single-family properties, and small and centrally managed multifamily properties. The company also provides RealPage Financial Services for back office accounting; Kigo, a vacation rental property management system; spend management solutions for property owners and managers; SmartSource IT for IT management and support services; and EasyLMS, a learning management system. In addition, it offers Online Leasing, Contact Center, Websites and Syndication, Intelligent Lease Management, LeaseLabs, Lead2Lease CRM, Resident Screening, and MyNewPlace solutions that manage leasing and marketing processes, including Websites and syndication, paid lead generation, organic lead generation, lead management, automated lead closure, lead analytics, real-time unit availability, automated online apartment leasing, applicant screening, and creative content design. Further, the company provides resident services solutions, such as resident utility management, resident payments, resident portal, contact center maintenance, and renter's insurance for utility billing, renter payment processing, service requests, lease renewals, renter's insurance, and consulting and advisory services; asset optimization solutions covering yieldstar revenue management, business intelligence, and asset and investment management platforms; and professional services, such as consulting and implementation, as well as training programs. RealPage, Inc. was founded in 1998 and is headquartered in Richardson, Texas.

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