Blackbaud (NASDAQ:BLKB – Get Free Report) and Synopsys (NASDAQ:SNPS – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.
Insider & Institutional Ownership
94.2% of Blackbaud shares are owned by institutional investors. Comparatively, 85.5% of Synopsys shares are owned by institutional investors. 2.0% of Blackbaud shares are owned by company insiders. Comparatively, 0.6% of Synopsys shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Blackbaud and Synopsys’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blackbaud | -22.57% | 137.13% | 5.46% |
| Synopsys | 18.89% | 7.89% | 4.45% |
Risk & Volatility
Analyst Recommendations
This is a summary of current recommendations and price targets for Blackbaud and Synopsys, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blackbaud | 1 | 3 | 0 | 0 | 1.75 |
| Synopsys | 1 | 6 | 11 | 0 | 2.56 |
Blackbaud presently has a consensus target price of $73.00, indicating a potential upside of 18.39%. Synopsys has a consensus target price of $562.13, indicating a potential upside of 8.16%. Given Blackbaud’s higher probable upside, analysts plainly believe Blackbaud is more favorable than Synopsys.
Earnings and Valuation
This table compares Blackbaud and Synopsys”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blackbaud | $1.16 billion | 2.55 | -$283.17 million | ($5.20) | -11.86 |
| Synopsys | $7.05 billion | 14.10 | $1.33 billion | $7.99 | 65.04 |
Synopsys has higher revenue and earnings than Blackbaud. Blackbaud is trading at a lower price-to-earnings ratio than Synopsys, indicating that it is currently the more affordable of the two stocks.
Summary
Synopsys beats Blackbaud on 9 of the 14 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 Synopsys
Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, MIPI, HDMI, and Bluetooth low energy applications; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers HAPS FPGA-based prototyping systems; virtual prototyping solutions; and Platform Architect solutions for SoC architecture analysis and optimization, as well as optical products, and mechatronic simulations. Further, it provides security and quality testing products, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. Additionally, the company provides intelligent orchestration solution, software risk manager, and black duck software composition analysis tools. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Sunnyvale, California.
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