Blackbaud (NASDAQ:BLKB – Get Free Report) and NetSol Technologies (NASDAQ:NTWK – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Volatility and Risk
Blackbaud has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, NetSol Technologies has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
Profitability
This table compares Blackbaud and NetSol Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blackbaud | -24.82% | 61.72% | 5.07% |
| NetSol Technologies | 4.46% | 7.40% | 4.86% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blackbaud | $1.14 billion | 2.71 | -$283.17 million | ($5.78) | -11.04 |
| NetSol Technologies | $66.09 million | 0.80 | $2.92 million | $0.25 | 18.00 |
NetSol Technologies has lower revenue, but higher earnings than Blackbaud. Blackbaud is trading at a lower price-to-earnings ratio than NetSol Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for Blackbaud and NetSol Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blackbaud | 1 | 3 | 0 | 0 | 1.75 |
| NetSol Technologies | 0 | 1 | 0 | 0 | 2.00 |
Blackbaud currently has a consensus price target of $70.50, suggesting a potential upside of 10.48%. Given Blackbaud’s higher possible upside, equities analysts clearly believe Blackbaud is more favorable than NetSol Technologies.
Insider and Institutional Ownership
94.2% of Blackbaud shares are owned by institutional investors. Comparatively, 16.0% of NetSol Technologies shares are owned by institutional investors. 2.0% of Blackbaud shares are owned by company insiders. Comparatively, 13.2% of NetSol Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Blackbaud beats NetSol Technologies on 7 of the 13 factors compared between the two stocks.
About Blackbaud
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.
About NetSol Technologies
NetSol Technologies, Inc. designs, develops, markets, and exports enterprise software solutions to the automobile financing and leasing, banking, and financial services industries worldwide. The company offers NFS Ascent, a suite of financial applications for businesses in the finance and leasing industry. Its NFS Ascent constituent applications include Omni Point of Sale, a web-based application; Contract Management System (CMS), an application for managing and maintaining credit contracts; Wholesale Finance System (WFS), a system for automating and managing the lifecycle of wholesale finance; Dealer Auditor Access System, a web-based solution that could be used in conjunction with WFS or any third-party wholesale finance system; NFS Ascent deployed on The Cloud, a cloud-version of NFS Ascent; and NFS Digital, that includes Self Point of Sale, Mobile Account, Mobile Point of Sale, Mobile Dealer, Mobile Auditor, Mobile Collector, and Mobile Field Investigator. The company also provides Otoz Digital Auto-Retail and mobility orchestration, a white-label SaaS platform; Otoz Ecosystem, an API-based architecture; and Otoz Platform, a white label platform, which includes Dealer/Admin Tool and Customer Portals. In addition, it offers system integration, consulting, and information technology products and services. It serves blue chip organizations, Dow-Jones 30 Industrials, Fortune 500 manufacturers and financial institutions, and vehicle manufacturers. The company was incorporated in 1997 and is headquartered in Encino, California.
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