Blackbaud (NASDAQ: BLKB) is one of 118 publicly-traded companies in the “Software” industry, but how does it compare to its rivals? We will compare Blackbaud to similar businesses based on the strength of its valuation, profitability, dividends, risk, earnings, analyst recommendations and institutional ownership.

Dividends

Blackbaud pays an annual dividend of $0.48 per share and has a dividend yield of 0.5%. Blackbaud pays out 47.1% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.0% and pay out 62.6% of their earnings in the form of a dividend.

Institutional & Insider Ownership

58.4% of shares of all “Software” companies are held by institutional investors. 2.2% of Blackbaud shares are held by insiders. Comparatively, 20.0% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Blackbaud has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Blackbaud’s rivals have a beta of 0.98, meaning that their average stock price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Blackbaud and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blackbaud 1 3 4 0 2.38
Blackbaud Competitors 264 2008 4268 84 2.63

Blackbaud currently has a consensus price target of $85.75, suggesting a potential downside of 6.74%. As a group, “Software” companies have a potential upside of 3.90%. Given Blackbaud’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Blackbaud has less favorable growth aspects than its rivals.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Blackbaud $757.18 million $131.91 million 90.15
Blackbaud Competitors $1.52 billion $446.91 million 39.53

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

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 6.46% 30.88% 6.29%
Blackbaud Competitors -43.40% -25.12% -9.89%

Summary

Blackbaud rivals beat Blackbaud on 10 of the 15 factors compared.

Blackbaud Company Profile

Blackbaud, Inc. is a cloud software company. The Company offers a range of cloud and on-premise solutions, as well as a resource network that empowers and connects organizations of all sizes. Its segments include the General Markets Business Unit (the GMBU), the Enterprise Customer Business Unit (the ECBU) and the International Business Unit (the IBU). The GMBU is focused on marketing, sales, delivery and support to all emerging and mid-sized prospects and customers in North America. The ECBU is focused on marketing, sales, delivery and support to all large and/or strategic prospects and customers in North America. The IBU is focused on marketing, sales, delivery and support to all prospects and customers outside of North America. It operates in four geographic regions: the United States, Canada, Europe and Australia. Its portfolio of software and services supports nonprofit fundraising and relationship management, digital marketing, advocacy, accounting, payments and analytics.

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