Black Knight (NYSE: BKI) and National Instruments (NASDAQ:NATI) are both mid-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Dividends

National Instruments pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. Black Knight does not pay a dividend. National Instruments pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Instruments has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Black Knight and National Instruments, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Knight 0 1 3 0 2.75
National Instruments 0 1 2 0 2.67

Black Knight presently has a consensus target price of $46.25, suggesting a potential upside of 4.28%. National Instruments has a consensus target price of $38.33, suggesting a potential downside of 9.89%. Given Black Knight’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Black Knight is more favorable than National Instruments.

Earnings & Valuation

This table compares Black Knight and National Instruments’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Black Knight $1.03 billion 6.59 $45.80 million $0.96 46.20
National Instruments $1.23 billion 4.53 $82.73 million $0.84 50.64

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

Institutional & Insider Ownership

26.3% of Black Knight shares are owned by institutional investors. Comparatively, 78.1% of National Instruments shares are owned by institutional investors. 5.0% of Black Knight shares are owned by company insiders. Comparatively, 9.9% of National Instruments shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Black Knight and National Instruments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Knight 4.31% 9.10% 4.53%
National Instruments 8.72% 10.16% 7.64%

Summary

National Instruments beats Black Knight on 10 of the 16 factors compared between the two stocks.

About Black Knight

Black Knight, Inc. provides integrated technology, workflow automation, and data and analytics to the mortgage and real estate industries. The Company’s segments include Technology, and Data and Analytics. The Company’s Technology segment offers software and hosting solutions that support loan servicing, loan origination and settlement services. Its Data and Analytics segment offers data and analytics solutions to the mortgage, real estate and capital markets industries. These solutions include property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, prepayment and default models, lead generation and other data solutions.

About National Instruments

National Instruments Corporation (NI) designs, manufactures and sells systems to engineers and scientists. The Company offers a line of measurement, automation and control products. It offers products, technology and services, which include system design software, programming tools, application software, modular hardware products and related driver software, production test systems, NI education platform, software products for teaching and hardware products for teaching. It also offers NI Services, including hardware services and maintenance, software maintenance services, and training and certification. Its products are used across various industries in a range of applications, including research and development, simulation and modeling, prototype and validation, production testing and industrial control and field and factory service and repair. It serves various industries and applications, such as consumer electronics, commercial aerospace, telecommunications and others.

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