Reviewing Blackbaud (NASDAQ:BLKB) & VTEX (NYSE:VTEX)

VTEX (NYSE:VTEX) and Blackbaud (NASDAQ:BLKB) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VTEX	10.48%	11.82%	7.86%
Blackbaud	12.87%	209.40%	6.97%

Valuation & Earnings

This table compares VTEX and Blackbaud”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VTEX	$240.52 million	2.76	$20.01 million	$0.15	25.97
Blackbaud	$1.13 billion	2.19	$114.97 million	$3.24	16.95

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

Risk & Volatility

VTEX has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Blackbaud has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for VTEX and Blackbaud, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VTEX	0	5	2	0	2.29
Blackbaud	0	3	2	0	2.40

VTEX currently has a consensus target price of $4.53, suggesting a potential upside of 16.39%. Blackbaud has a consensus target price of $52.00, suggesting a potential downside of 5.32%. Given VTEX’s higher possible upside, research analysts clearly believe VTEX is more favorable than Blackbaud.

Insider & Institutional Ownership

63.7% of VTEX shares are held by institutional investors. Comparatively, 94.2% of Blackbaud shares are held by institutional investors. 40.9% of VTEX shares are held by company insiders. Comparatively, 2.0% of Blackbaud shares are held by company 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.

Summary

Blackbaud beats VTEX on 7 of the 13 factors compared between the two stocks.

About VTEX

VTEX is a cloud-based commerce technology company that provides a digital commerce platform for retailers, brands and other businesses. Its software supports online stores and helps companies manage digital sales across multiple channels. The platform combines storefront tools with capabilities for order management, marketplace operations, payments and integrations with other business systems. VTEX’s services are designed to help companies build and manage customer-facing commerce experiences while coordinating orders and operations behind the scenes.

About Blackbaud

Blackbaud, Inc. develops cloud software and related services for organizations focused on social good. Its customers include nonprofit organizations, foundations, schools and universities, healthcare organizations, and businesses that support charitable causes. The company’s products help customers manage fundraising, donor and constituent relationships, financial operations, marketing, grantmaking, and education administration. Its offerings include tools for online fundraising, payment processing, data analysis, and engagement with supporters, students, and other stakeholders.