Reviewing Blackbaud (NASDAQ:BLKB) and Roblox (NYSE:RBLX)

Blackbaud (NASDAQ:BLKB – Get Rating) and Roblox (NYSE:RBLX – Get Rating) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Profitability

This table compares Blackbaud and Roblox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blackbaud	-4.29%	7.34%	1.92%
Roblox	-41.54%	-200.01%	-18.44%

Volatility and Risk

Blackbaud has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Roblox has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Blackbaud and Roblox, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackbaud	0	1	0	0	2.00
Roblox	7	9	10	0	2.12

Blackbaud currently has a consensus price target of $66.00, suggesting a potential upside of 15.51%. Roblox has a consensus price target of $37.75, suggesting a potential downside of 13.60%. Given Blackbaud’s higher possible upside, analysts clearly believe Blackbaud is more favorable than Roblox.

Institutional & Insider Ownership

97.4% of Blackbaud shares are held by institutional investors. Comparatively, 72.4% of Roblox shares are held by institutional investors. 1.7% of Blackbaud shares are held by insiders. Comparatively, 28.2% of Roblox shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Blackbaud and Roblox’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackbaud	$1.06 billion	2.87	-$45.41 million	($0.88)	-64.93
Roblox	$2.23 billion	10.87	-$924.37 million	($1.55)	-28.19

Blackbaud has higher earnings, but lower revenue than Roblox. Blackbaud is trading at a lower price-to-earnings ratio than Roblox, indicating that it is currently the more affordable of the two stocks.

Summary

Blackbaud beats Roblox on 7 of the 13 factors compared between the two stocks.

About Blackbaud

(Get Rating)

Blackbaud, Inc. engages in the provision of cloud-based and on-premises software solutions and related services for the global philanthropic community. It offers solutions for fundraising and constituent relationship management (CRM), marketing, advocacy, accounting, peer-to-peer fundraising, corporate social responsibility (CSR), school management, ticketing, financial management, payment processing, and analytics. The company was founded by Anthony E. Bakker in 1981 and is headquartered in Charleston, SC.

About Roblox

(Get Rating)

Roblox Corporation develops and operates an online entertainment platform. The company offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D digital world; Roblox Education for learning experiences; and Roblox Cloud, which provides services and infrastructure that power the human co-experience platform. It serves customers in the United States, the United Kingdom, Canada, Europe, China, the Asia-Pacific, and internationally. The company was incorporated in 2004 and is headquartered in San Mateo, California.