Critical Analysis: Black Knight (BKI) and The Competition
Black Knight (NYSE: BKI) is one of 113 publicly-traded companies in the “Software” industry, but how does it compare to its peers? We will compare Black Knight to related companies based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Risk & Volatility
Black Knight has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Black Knight’s peers have a beta of 1.11, indicating that their average stock price is 11% more volatile than the S&P 500.
This table compares Black Knight and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Black Knight Competitors||-46.46%||-23.50%||-7.29%|
Insider and Institutional Ownership
26.3% of Black Knight shares are owned by institutional investors. Comparatively, 58.9% of shares of all “Software” companies are owned by institutional investors. 5.0% of Black Knight shares are owned by insiders. Comparatively, 17.4% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Black Knight and its peers gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Black Knight||$1.03 billion||$45.80 million||69.46|
|Black Knight Competitors||$2.23 billion||$415.57 million||346.09|
Black Knight’s peers have higher revenue and earnings than Black Knight. Black Knight is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent ratings and price targets for Black Knight and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Black Knight Competitors||285||2101||4458||89||2.63|
Black Knight presently has a consensus price target of $46.25, indicating a potential upside of 2.44%. As a group, “Software” companies have a potential upside of 14.04%. Given Black Knight’s peers higher possible upside, analysts clearly believe Black Knight has less favorable growth aspects than its peers.
Black Knight peers beat Black Knight on 8 of the 13 factors compared.
Black Knight Company Profile
Black Knight, Inc. provides integrated technology, workflow automation, and data and analytics to the mortgage and real estate industries. The Company’s segments include Technology, and Data and Analytics. The Company’s Technology segment offers software and hosting solutions that support loan servicing, loan origination and settlement services. Its Data and Analytics segment offers data and analytics solutions to the mortgage, real estate and capital markets industries. These solutions include property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, prepayment and default models, lead generation and other data solutions.
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