Reviewing Blackbaud (NASDAQ:BLKB) and VTEX (NYSE:VTEX)

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

Valuation and Earnings

This table compares Blackbaud and VTEX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackbaud	$1.13 billion	2.16	$114.97 million	$3.24	16.70
VTEX	$252.65 million	2.67	$20.01 million	$0.15	26.37

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.

Profitability

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

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

Risk and Volatility

Blackbaud has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, VTEX has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Institutional and Insider Ownership

94.2% of Blackbaud shares are held by institutional investors. Comparatively, 63.7% of VTEX shares are held by institutional investors. 2.0% of Blackbaud shares are held by insiders. Comparatively, 40.9% of VTEX 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Blackbaud and VTEX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackbaud	0	3	2	0	2.40
VTEX	0	6	2	0	2.25

Blackbaud currently has a consensus price target of $52.00, indicating a potential downside of 3.92%. VTEX has a consensus price target of $4.60, indicating a potential upside of 16.31%. Given VTEX’s higher probable upside, analysts plainly believe VTEX is more favorable than Blackbaud.

Summary

Blackbaud beats VTEX on 7 of the 13 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 VTEX

VTEX provides software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce strategy, including building online stores, integrating, and managing orders across channels, and creating marketplaces to sell products from third-party vendors. It has operations in Brazil, Argentina, Chile, Colombia, France, Italy, Mexico, Peru, Portugal, Romania, Singapore, Spain, the United Kingdom, and the United States. VTEX was founded in 2000 and is headquartered in London, the United Kingdom.