Critical Comparison: CommVault Systems (NASDAQ:CVLT) versus Blackbaud (NASDAQ:BLKB)
by Tristan Rich · The Markets DailyCommVault Systems (NASDAQ:CVLT – Get Free Report) and Blackbaud (NASDAQ:BLKB – Get Free Report) are both mid-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.
Valuation and Earnings
This table compares CommVault Systems 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 | |
| CommVault Systems | $995.62 million | 5.58 | $76.11 million | $1.78 | 70.78 |
| Blackbaud | $1.16 billion | 2.54 | -$283.17 million | ($5.20) | -11.78 |
CommVault Systems has higher earnings, but lower revenue than Blackbaud. Blackbaud is trading at a lower price-to-earnings ratio than CommVault Systems, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CommVault Systems and Blackbaud’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CommVault Systems | 7.32% | 31.53% | 7.16% |
| Blackbaud | -22.57% | 137.13% | 5.46% |
Insider and Institutional Ownership
93.5% of CommVault Systems shares are held by institutional investors. Comparatively, 94.2% of Blackbaud shares are held by institutional investors. 1.0% of CommVault Systems shares are held by company insiders. Comparatively, 2.0% of Blackbaud shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
CommVault Systems has a beta of 0.57, meaning that its share price is 43% less 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.
Analyst Ratings
This is a summary of current ratings for CommVault Systems and Blackbaud, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CommVault Systems | 0 | 4 | 10 | 2 | 2.88 |
| Blackbaud | 1 | 3 | 0 | 0 | 1.75 |
CommVault Systems currently has a consensus price target of $188.17, indicating a potential upside of 49.34%. Blackbaud has a consensus price target of $73.00, indicating a potential upside of 19.13%. Given CommVault Systems’ stronger consensus rating and higher probable upside, research analysts plainly believe CommVault Systems is more favorable than Blackbaud.
Summary
CommVault Systems beats Blackbaud on 10 of the 15 factors compared between the two stocks.
About CommVault Systems
Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.
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.