Reviewing Blackbaud (BLKB) & Its Competitors

Blackbaud (NASDAQ:BLKB) is one of 954 publicly-traded companies in the “Software” industry, but how does it contrast to its competitors? We will compare Blackbaud to similar businesses based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackbaud	0	3	2	0	2.40
Blackbaud Competitors	5715	21424	44682	1492	2.57

Blackbaud currently has a consensus target price of $52.00, indicating a potential downside of 2.89%. As a group, “Software” companies have a potential upside of 27.74%. Given Blackbaud’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Blackbaud has less favorable growth aspects than its competitors.

Risk and Volatility

Blackbaud has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Blackbaud’s competitors have a beta of 1.34, suggesting that their average stock price is 34% more volatile than the S&P 500.

Profitability

This table compares Blackbaud and its competitors’ 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	-612.30%	20.88%	-8.99%

Earnings & Valuation

This table compares Blackbaud and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Blackbaud	$1.13 billion	$114.97 million	16.53
Blackbaud Competitors	$1.81 billion	$385.92 million	111.24

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

Institutional & Insider Ownership

94.2% of Blackbaud shares are owned by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are owned by institutional investors. 2.0% of Blackbaud shares are owned by insiders. Comparatively, 19.8% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Blackbaud competitors beat Blackbaud on 9 of the 13 factors compared.

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.