Critical Analysis: Asure Software (NASDAQ:ASUR) versus BlackSky Technology (NYSE:BKSY)

BlackSky Technology (NYSE:BKSY) and Asure Software (NASDAQ:ASUR) are both small-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BlackSky Technology and Asure Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackSky Technology	1	1	2	1	2.60
Asure Software	1	1	2	1	2.60

BlackSky Technology currently has a consensus target price of $39.33, indicating a potential upside of 90.70%. Asure Software has a consensus target price of $13.00, indicating a potential upside of 53.85%. Given BlackSky Technology’s higher probable upside, analysts clearly believe BlackSky Technology is more favorable than Asure Software.

Valuation & Earnings

This table compares BlackSky Technology and Asure Software”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackSky Technology	$106.57 million	7.92	-$70.26 million	($1.82)	-11.33
Asure Software	$140.54 million	1.74	-$13.13 million	($0.29)	-29.14

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

Profitability

This table compares BlackSky Technology and Asure Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlackSky Technology	-61.24%	-51.24%	-14.80%
Asure Software	-5.42%	8.19%	3.27%

Volatility and Risk

BlackSky Technology has a beta of 2.61, suggesting that its share price is 161% more volatile than the S&P 500. Comparatively, Asure Software has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Institutional & Insider Ownership

27.1% of BlackSky Technology shares are owned by institutional investors. Comparatively, 71.6% of Asure Software shares are owned by institutional investors. 5.2% of BlackSky Technology shares are owned by insiders. Comparatively, 8.9% of Asure Software shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Asure Software beats BlackSky Technology on 8 of the 12 factors compared between the two stocks.

About BlackSky Technology

BlackSky Technology Inc. provides geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operation of satellite and ground systems for government and commercial customers in North America, the Middle East, the Asia Pacific, and internationally. The company's Spectra software platform processes a range of observations from its satellite constellation and various external data sources, including imaging, radar and radio frequency satellites, environmental sensors, asset tracking sensors, Internet-of-Things (IoT) connected devices, internet-enabled narrative sources, and a variety of geotemporal data feeds. It offers a range of services related to object, change and anomaly detection, site monitoring, and enhanced analytics, which helps to detect key pattern of life changes in critical locations, including strategic locations and infrastructure comprising ports, airports, and construction sites; retail activity; commodities stockpiles; and other sites that contain critical commodities and supply chain inventory. In addition, the company develops and delivers satellites and payload systems; and provides professional and engineering services. Its products and services are used in national security, supply chain intelligence, crisis management, critical infrastructure monitoring, economic intelligence, and other applications. BlackSky Technology Inc. was incorporated in 2018 and is headquartered in Herndon, Virginia.

About Asure Software

Asure Software, Inc. engages in the provision of cloud-based Human Capital Management (HCM) software solutions in the United States. It provides its human resources (HR) tool as Software-as-a-Service that helps various small and medium-sized businesses to build productive workforce to help them stay compliant and allocate resources to grow their business. The company's solutions include Asure Payroll & Tax, an integrated solution that simplifies payroll and automates regulations associated with payroll and taxes, including wages, benefits, overtime, garnishments, tips, direct deposits, and fair labor standard act, as well as federal, state, and local payroll taxes; and Tax Management Solutions, that provides payroll tax processing software and service solutions, as well as bulk filing and processing support of employee retention tax credits, for the payroll service industry, mid-market, and corporate employers. It also provides HR compliance and services, including HR support, which provides an on-demand HR resource library, phone, and email support for various HR issues and compliance, and policy updates; Strategic HR, which provides in-depth support for strategic HR decision making; and Total HR, which provides a complete HR outsourcing solution, for handling HR complexities, such as employee self-service, applicant tracking, onboarding, and compliance. In addition, the company offers Time and Attendance, which provides cost savings and return on investment gains come in the form of strategic use of labor dollars and the elimination of time theft; and AsureMarketplace that automates interactions between its HCM systems with third-party providers. Asure Software, Inc. was incorporated in 1985 and is headquartered in Austin, Texas.