Head-To-Head Review: Blackbaud (NASDAQ:BLKB) versus Verint Systems (NASDAQ:VRNT)
by Teresa Graham · The Cerbat GemVerint Systems (NASDAQ:VRNT – Get Free Report) and Blackbaud (NASDAQ:BLKB – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
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% |
Insider and Institutional Ownership
94.9% of Verint Systems shares are owned by institutional investors. Comparatively, 94.2% of Blackbaud shares are owned by institutional investors. 1.3% of Verint Systems shares are owned by company insiders. Comparatively, 2.0% of Blackbaud shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Verint Systems has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Blackbaud has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Earnings and Valuation
This table compares Verint Systems and Blackbaud”s revenue, earnings per share 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 | 2.46 | -$283.17 million | ($5.20) | -11.45 |
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.
Analyst Recommendations
This is a breakdown of current 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, suggesting a potential upside of 20.92%. Blackbaud has a consensus target price of $73.00, suggesting a potential upside of 22.65%. Given Blackbaud’s higher possible upside, analysts plainly believe Blackbaud is more favorable than Verint Systems.
Summary
Verint Systems beats Blackbaud on 8 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.