Head to Head Analysis: Verint Systems (NASDAQ:VRNT) and Blackbaud (NASDAQ:BLKB)

Verint Systems (NASDAQ:VRNT) and Blackbaud (NASDAQ:BLKB) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

94.9% of Verint Systems shares are held by institutional investors. Comparatively, 94.2% of Blackbaud shares are held by institutional investors. 1.3% of Verint Systems shares are held by insiders. Comparatively, 2.0% of Blackbaud shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Verint Systems has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Blackbaud has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Valuation and Earnings

This table compares Verint Systems and Blackbaud”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verint Systems	$893.84 million	1.39	$82.27 million	$0.71	28.89
Blackbaud	$1.16 billion	2.56	-$283.17 million	($5.20)	-11.89

Verint Systems has higher earnings, but lower revenue than Blackbaud. Blackbaud is trading at a lower price-to-earnings ratio than Verint Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Verint Systems and Blackbaud’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verint Systems	6.87%	11.06%	4.37%
Blackbaud	-22.57%	137.13%	5.46%

Analyst Ratings

This is a breakdown of recent ratings for Verint Systems and Blackbaud, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verint Systems	1	6	1	0	2.00
Blackbaud	1	3	0	0	1.75

Verint Systems currently has a consensus target price of $24.80, indicating a potential upside of 20.92%. Blackbaud has a consensus target price of $73.00, indicating a potential upside of 18.05%. Given Verint Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Verint Systems is more favorable than Blackbaud.

Summary

Verint Systems beats Blackbaud on 9 of the 14 factors compared between the two stocks.

About Verint Systems

Verint Systems Inc. provides customer engagement solutions worldwide. It offers forecasting and scheduling, channels and routing, knowledge management, fraud and security solutions, quality and compliance, analytics and insights, real-time assistance, self-services, financial compliance, and voice pf the consumer solutions. The company provides Verint Open platform designed to help brands increase CX automation across all touchpoints between organization and customers in the contact center, back office, branch, web sites, and mobile apps. It serves banking, insurance, public, retail, and telecommunication industries. Verint Systems Inc. was incorporated in 1994 and is headquartered in Melville, New York.

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.