Bridgeline Digital (NASDAQ:BLIN) versus EngageSmart (NYSE:ESMT) Critical Survey

Bridgeline Digital (NASDAQ:BLINGet Rating) and EngageSmart (NYSE:ESMTGet Rating) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Valuation and Earnings

This table compares Bridgeline Digital and EngageSmart’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bridgeline Digital $13.26 million 1.41 -$6.69 million ($1.06) -1.75
EngageSmart $216.28 million 16.18 -$8.97 million N/A N/A

Bridgeline Digital has higher earnings, but lower revenue than EngageSmart.

Profitability

This table compares Bridgeline Digital and EngageSmart’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridgeline Digital -24.84% -28.74% -12.48%
EngageSmart N/A N/A N/A

Insider and Institutional Ownership

28.3% of Bridgeline Digital shares are held by institutional investors. Comparatively, 86.5% of EngageSmart shares are held by institutional investors. 6.2% of Bridgeline Digital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Bridgeline Digital and EngageSmart, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridgeline Digital 0 0 0 0 N/A
EngageSmart 0 2 7 1 2.90

EngageSmart has a consensus target price of $31.94, indicating a potential upside of 48.03%. Given EngageSmart’s higher probable upside, analysts clearly believe EngageSmart is more favorable than Bridgeline Digital.

Summary

EngageSmart beats Bridgeline Digital on 9 of the 11 factors compared between the two stocks.

Bridgeline Digital Company Profile (Get Rating)

Bridgeline Digital, Inc. operates as a digital engagement company in the United States. The company's Bridgeline's Unbound platform enables companies and developers to create websites, web applications, and online stores. It offers Bridgeline Unbound Experience Manager, a marketing automation engine and content management system; Bridgeline Unbound Content Manager that enables non-technical users to create, edit, and publish content via a browser-based interface; and Bridgeline Unbound Commerce, an online B2B and B2C commerce solution that allows users to manage domestic and international commerce initiatives. The company also provides Bridgeline Unbound Marketing, an online marketing management solution that helps marketers drive to their sites through personalized and targeted marketing automation flows; and Bridgeline Unbound Insights to manage, measure, and optimize web properties by recording detailed events and mining data for statistical analysis. In addition, it offers Bridgeline Unbound Social, a social media management solution that empowers customers to set up customized watch lists; and Bridgeline Unbound Franchises, a web content management and e-commerce platform to multi-unit organizations and franchises. Further, the company provides digital strategy, web design and development, usability engineering, information architecture, and search engine optimization services; application monitoring, emergency response, version control, load balancing, managed firewall security, and virus protection services; and shared, dedicated, and Software as a Service hosting services. Further, it offers OrchestraCMS by Bridgeline and Celebros Search by Bridgeline digital solutions. It serves vertical markets, such as financial services, retail brand names, health services and life sciences, technology, credit unions and regional banks, and associations and foundations through its direct sales force. The company was formerly known as Bridgeline Software, Inc. Bridgeline Digital, Inc. was founded in 2000 and is based in Burlington, Massachusetts.

EngageSmart Company Profile (Get Rating)

EngageSmart, Inc. provides Software-as-a-Service based customer engagement software and integrated payment solutions. It operates through two segments, Enterprise Solutions and SMB (small and medium sized business) Solutions. The company offers SimplePractice, an end-to-end practice management and electronic health record platform for health and wellness professionals to manage their practices; and InvoiceCloud, an electronic bill presentment and payment solution that helps government, utility, and financial services customers to digitize billing, client communications, and collections. It also provides HealthPay24, a patient engagement and payment platform that helps health systems, physician groups, dental practices, and medical billers to drive patient self-pay collections; and DonorDrive, a fundraising software platform that helps non-profits, healthcare organizations, and higher education institutions produce virtual events, launch branded donation campaigns, and create peer-to-peer fundraising experiences. The company was formerly known as EngageSmart, LLC. and changed its name to EngageSmart, Inc. in June 2021. EngageSmart, Inc. was incorporated in 2018 and is headquartered in Braintree, Massachusetts.

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