Head-To-Head Contrast: Blackbaud (BLKB) & Its Rivals

Blackbaud (NASDAQ:BLKB) is one of 955 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare Blackbaud to similar companies based on the strength of its profitability, earnings, dividends, institutional ownership, analyst recommendations, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Blackbaud and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackbaud	0	3	2	0	2.40
Blackbaud Competitors	5703	21426	44631	1489	2.57

Blackbaud presently has a consensus target price of $49.50, indicating a potential downside of 2.19%. As a group, “Software” companies have a potential upside of 25.77%. Given Blackbaud’s peers stronger consensus rating and higher possible upside, analysts clearly believe Blackbaud has less favorable growth aspects than its peers.

Risk and Volatility

Blackbaud has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Blackbaud’s peers have a beta of 1.10, meaning that their average stock price is 10% more volatile than the S&P 500.

Earnings and Valuation

This table compares Blackbaud and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Blackbaud	$1.15 billion	N/A	15.82
Blackbaud Competitors	$584.84 million	$17.13 million	112.69

Blackbaud has higher revenue, but lower earnings than its peers. Blackbaud is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

94.2% of Blackbaud shares are owned by institutional investors. Comparatively, 42.0% of shares of all “Software” companies are owned by institutional investors. 2.0% of Blackbaud shares are owned by company insiders. Comparatively, 19.8% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Blackbaud and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blackbaud	N/A	N/A	N/A
Blackbaud Competitors	-1,063.49%	78.00%	-11.24%

Dividends

Blackbaud pays an annual dividend of $0.48 per share and has a dividend yield of 0.9%. Blackbaud pays out 15.0% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 2.1% and pay out 52.0% of their earnings in the form of a dividend.

Summary

Blackbaud peers beat Blackbaud on 9 of the 14 factors compared.

Blackbaud Company Profile

Blackbaud, Inc. provides cloud software solutions to nonprofits, foundations, education institutions, and healthcare organizations in the United States and internationally. The company offers fundraising and engagement solutions, such as Blackbaud Raiser's Edge NXT, Blackbaud CRM, Blackbaud eTapestry, Blackbaud Luminate Online, Blackbaud TeamRaiser, JustGiving, Blackbaud Fundraiser Performance Management, Blackbaud Guided Fundraising, and Blackbaud Altru; and financial management solutions comprising Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid and Billing Management. It also provides grant and award management solutions, consisting of Blackbaud Grantmaking and Blackbaud Award Management; education solutions, such as Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, and Blackbaud School Website System; social responsibility solutions, which includes YourCause GrantsConnect and YourCause CSRconnect, and EVERFI; Blackbaud Merchant Services and Blackbaud Purchase Cards payment services; and Blackbaud's Intelligence for Good solutions, as well as Data Health, Insights, and Performance solutions and services. The company sells its solutions and related services through its direct sales force. Blackbaud, Inc. was founded in 1981 and is headquartered in Charleston, South Carolina.