Critical Analysis: Black Knight (BKI) & National Instruments (NATI)
Black Knight (NYSE: BKI) and National Instruments (NASDAQ:NATI) are both mid-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Earnings and Valuation
This table compares Black Knight and National Instruments’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Black Knight||$1.03 billion||6.77||$45.80 million||$0.65||70.15|
|National Instruments||$1.23 billion||4.53||$82.73 million||$0.84||50.69|
National Instruments has higher revenue and earnings than Black Knight. National Instruments is trading at a lower price-to-earnings ratio than Black Knight, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
26.3% of Black Knight shares are owned by institutional investors. Comparatively, 78.1% of National Instruments shares are owned by institutional investors. 30.8% of Black Knight shares are owned by insiders. Comparatively, 9.9% of National Instruments shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Black Knight and National Instruments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Black Knight has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, National Instruments has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.
This is a summary of current recommendations for Black Knight and National Instruments, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Black Knight currently has a consensus target price of $46.25, suggesting a potential upside of 1.43%. National Instruments has a consensus target price of $38.33, suggesting a potential downside of 9.97%. Given Black Knight’s stronger consensus rating and higher possible upside, research analysts plainly believe Black Knight is more favorable than National Instruments.
National Instruments pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. Black Knight does not pay a dividend. National Instruments pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Instruments has increased its dividend for 7 consecutive years.
National Instruments beats Black Knight on 11 of the 17 factors compared between the two stocks.
About Black Knight
Black Knight, Inc. provides integrated technology, workflow automation, and data and analytics to the mortgage and real estate industries. The Company’s segments include Technology, and Data and Analytics. The Company’s Technology segment offers software and hosting solutions that support loan servicing, loan origination and settlement services. Its Data and Analytics segment offers data and analytics solutions to the mortgage, real estate and capital markets industries. These solutions include property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, prepayment and default models, lead generation and other data solutions.
About National Instruments
National Instruments Corporation (NI) designs, manufactures and sells systems to engineers and scientists. The Company offers a line of measurement, automation and control products. It offers products, technology and services, which include system design software, programming tools, application software, modular hardware products and related driver software, production test systems, NI education platform, software products for teaching and hardware products for teaching. It also offers NI Services, including hardware services and maintenance, software maintenance services, and training and certification. Its products are used across various industries in a range of applications, including research and development, simulation and modeling, prototype and validation, production testing and industrial control and field and factory service and repair. It serves various industries and applications, such as consumer electronics, commercial aerospace, telecommunications and others.
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