Financial Survey: Blackbaud (NASDAQ:BLKB) vs. VTEX (NYSE:VTEX)

VTEX (NYSE:VTEX) and Blackbaud (NASDAQ:BLKB) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Institutional and Insider Ownership

63.7% of VTEX shares are held by institutional investors. Comparatively, 94.2% of Blackbaud shares are held by institutional investors. 40.9% of VTEX shares are held by insiders. Comparatively, 2.0% of Blackbaud shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

VTEX has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Blackbaud has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VTEX	10.48%	11.82%	7.86%
Blackbaud	12.87%	209.40%	6.97%

Valuation and Earnings

This table compares VTEX 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
VTEX	$240.52 million	2.80	$20.01 million	$0.15	26.30
Blackbaud	$1.13 billion	2.16	$114.97 million	$3.24	16.72

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

Analyst Ratings

This is a breakdown of recent recommendations for VTEX and Blackbaud, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VTEX	0	5	2	0	2.29
Blackbaud	0	3	2	0	2.40

VTEX currently has a consensus price target of $4.53, suggesting a potential upside of 14.91%. Blackbaud has a consensus price target of $52.00, suggesting a potential downside of 4.00%. Given VTEX’s higher probable upside, equities research analysts clearly believe VTEX is more favorable than Blackbaud.

Summary

Blackbaud beats VTEX on 7 of the 13 factors compared between the two stocks.

About VTEX

VTEX is a cloud-based commerce technology company that provides a digital commerce platform for retailers, brands and other businesses. Its software supports online stores and helps companies manage digital sales across multiple channels. The platform combines storefront tools with capabilities for order management, marketplace operations, payments and integrations with other business systems. VTEX’s services are designed to help companies build and manage customer-facing commerce experiences while coordinating orders and operations behind the scenes.

About Blackbaud

Blackbaud, Inc. develops cloud software and related services for organizations focused on social good. Its customers include nonprofit organizations, foundations, schools and universities, healthcare organizations, and businesses that support charitable causes. The company’s products help customers manage fundraising, donor and constituent relationships, financial operations, marketing, grantmaking, and education administration. Its offerings include tools for online fundraising, payment processing, data analysis, and engagement with supporters, students, and other stakeholders.