Blackbaud (NASDAQ:BLKB – Get Free Report) and Verint Systems (NASDAQ:VRNT – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Risk and Volatility
Blackbaud has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Verint Systems has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.
Valuation and Earnings
This table compares Blackbaud and Verint Systems”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blackbaud | $1.14 billion | 2.62 | -$283.17 million | ($5.20) | -11.96 |
| Verint Systems | $893.84 million | 1.39 | $82.27 million | $0.71 | 28.89 |
Verint Systems has lower revenue, but higher earnings 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 Blackbaud and Verint Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blackbaud | -22.57% | 137.13% | 5.46% |
| Verint Systems | 6.87% | 11.06% | 4.37% |
Institutional and Insider Ownership
94.2% of Blackbaud shares are held by institutional investors. Comparatively, 94.9% of Verint Systems shares are held by institutional investors. 2.0% of Blackbaud shares are held by company insiders. Comparatively, 1.3% of Verint Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and target prices for Blackbaud and Verint Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blackbaud | 1 | 3 | 0 | 0 | 1.75 |
| Verint Systems | 1 | 6 | 1 | 0 | 2.00 |
Blackbaud currently has a consensus price target of $73.00, suggesting a potential upside of 17.34%. Verint Systems has a consensus price target of $24.80, suggesting a potential upside of 20.92%. Given Verint Systems’ stronger consensus rating and higher possible upside, analysts clearly 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 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 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.
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