Financial Review: SS&C Technologies Holdings (SSNC) versus Blackbaud (BLKB)
SS&C Technologies Holdings (NASDAQ: SSNC) and Blackbaud (NASDAQ:BLKB) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
This is a breakdown of recent recommendations and price targets for SS&C Technologies Holdings and Blackbaud, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SS&C Technologies Holdings||0||1||5||0||2.83|
SS&C Technologies Holdings currently has a consensus target price of $41.00, indicating a potential upside of 9.83%. Blackbaud has a consensus target price of $81.71, indicating a potential downside of 2.07%. Given SS&C Technologies Holdings’ stronger consensus rating and higher possible upside, equities analysts clearly believe SS&C Technologies Holdings is more favorable than Blackbaud.
Valuation & Earnings
This table compares SS&C Technologies Holdings and Blackbaud’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SS&C Technologies Holdings||$1.60 billion||4.79||$580.87 million||$0.94||39.71|
|Blackbaud||$757.18 million||5.14||$131.91 million||$1.02||81.80|
SS&C Technologies Holdings has higher revenue and earnings than Blackbaud. SS&C Technologies Holdings is trading at a lower price-to-earnings ratio than Blackbaud, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
89.6% of SS&C Technologies Holdings shares are held by institutional investors. 17.6% of SS&C Technologies Holdings shares are held by insiders. Comparatively, 2.7% of Blackbaud shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
SS&C Technologies Holdings pays an annual dividend of $0.25 per share and has a dividend yield of 0.7%. Blackbaud pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. SS&C Technologies Holdings pays out 26.6% of its earnings in the form of a dividend. Blackbaud pays out 47.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SS&C Technologies Holdings is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares SS&C Technologies Holdings and Blackbaud’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SS&C Technologies Holdings||12.17%||14.90%||6.09%|
Risk and Volatility
SS&C Technologies Holdings has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Blackbaud has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
SS&C Technologies Holdings beats Blackbaud on 11 of the 16 factors compared between the two stocks.
SS&C Technologies Holdings Company Profile
SS&C Technologies Holdings, Inc. is a holding company. The Company is a provider of software products and software-enabled services that allow financial services providers to automate complex business processes and manage their information processing requirements. The Company’s portfolio of software products and software-enabled services allows its clients to automate and integrate front-office functions, such as trading and modeling, middle-office functions, such as portfolio management and reporting, and back-office functions, such as accounting, performance measurement, reconciliation, reporting, processing and clearing. The Company provides its solutions across the globe to over 11,000 clients, principally within the institutional asset and wealth management, alternative investment management, financial advisory and financial institutions vertical markets. Its portfolio includes over 90 products and software-enabled services.
Blackbaud Company Profile
Blackbaud, Inc. is a cloud software company. The Company offers a range of cloud and on-premise solutions, as well as a resource network that empowers and connects organizations of all sizes. Its segments include the General Markets Business Unit (the GMBU), the Enterprise Customer Business Unit (the ECBU) and the International Business Unit (the IBU). The GMBU is focused on marketing, sales, delivery and support to all emerging and mid-sized prospects and customers in North America. The ECBU is focused on marketing, sales, delivery and support to all large and/or strategic prospects and customers in North America. The IBU is focused on marketing, sales, delivery and support to all prospects and customers outside of North America. It operates in four geographic regions: the United States, Canada, Europe and Australia. Its portfolio of software and services supports nonprofit fundraising and relationship management, digital marketing, advocacy, accounting, payments and analytics.
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