Contrasting Blackbaud (BLKB) and Its Competitors

Blackbaud (NASDAQ:BLKB) is one of 953 public companies in the “Software” industry, but how does it contrast to its rivals? We will compare Blackbaud to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, profitability, risk and dividends.

Institutional & 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Blackbaud has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Blackbaud’s rivals have a beta of 1.19, indicating that their average stock price is 19% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blackbaud	12.87%	209.40%	6.97%
Blackbaud Competitors	-612.70%	20.86%	-8.99%

Valuation & Earnings

This table compares Blackbaud and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Blackbaud	$1.13 billion	$114.97 million	17.47
Blackbaud Competitors	$1.80 billion	$385.91 million	109.95

Blackbaud’s rivals have higher revenue and earnings than Blackbaud. Blackbaud is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and price targets for Blackbaud and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackbaud	0	3	2	0	2.40
Blackbaud Competitors	5729	21452	44734	1492	2.57

Blackbaud presently has a consensus price target of $52.00, indicating a potential downside of 8.14%. As a group, “Software” companies have a potential upside of 25.96%. Given Blackbaud’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Blackbaud has less favorable growth aspects than its rivals.

Summary

Blackbaud rivals beat Blackbaud on 9 of the 13 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.