Critical Review: American Software (NASDAQ:AMSWA) and Blackbaud (NASDAQ:BLKB)

American Software (NASDAQ:AMSWAGet Rating) and Blackbaud (NASDAQ:BLKBGet Rating) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Analyst Ratings

This is a breakdown of recent ratings for American Software and Blackbaud, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Software 0 1 3 0 2.75
Blackbaud 0 2 0 0 2.00

American Software presently has a consensus price target of $32.33, suggesting a potential upside of 86.36%. Blackbaud has a consensus price target of $70.00, suggesting a potential upside of 20.86%. Given American Software’s stronger consensus rating and higher probable upside, equities analysts plainly believe American Software is more favorable than Blackbaud.

Risk & Volatility

American Software has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Blackbaud has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
American Software 10.09% 9.77% 6.88%
Blackbaud 0.61% 10.60% 2.50%

Institutional & Insider Ownership

84.4% of American Software shares are owned by institutional investors. Comparatively, 98.6% of Blackbaud shares are owned by institutional investors. 9.7% of American Software shares are owned by company insiders. Comparatively, 1.3% of Blackbaud shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares American Software and Blackbaud’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Software $111.41 million 5.23 $8.09 million $0.37 46.89
Blackbaud $927.74 million 3.31 $5.70 million $0.12 482.71

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

Summary

American Software beats Blackbaud on 9 of the 14 factors compared between the two stocks.

American Software Company Profile (Get Rating)

American Software, Inc. develops, markets, and supports a range of computer business application software products in the United States and internationally. It operates through three segments: Supply Chain Management (SCM), Information Technology Consulting (IT Consulting), and Other. The SCM segment provides demand optimization, inventory optimization, supply optimization, retail optimization, quality and compliance, PLM, sourcing management, and integrated business planning services. The IT Consulting segment offers IT staffing and consulting services, such as software enhancement, documentation, update, customer education, consulting, systems integration, maintenance, and support services. The Other segment provides purchasing and materials management, customer order processing, financial, e-commerce, and traditional manufacturing solutions. The company markets its products through direct and indirect sales channels to the apparel and other soft goods, retail, food and beverage, consumer packaged goods, durable goods, chemical and process manufacturing, and life sciences industries. American Software, Inc. was incorporated in 1970 and is headquartered in Atlanta, Georgia.

Blackbaud Company Profile (Get Rating)

Blackbaud, Inc. provides cloud software solutions to higher education institutions, K-12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies, and individual change agents in the United States and internationally. The company offers fundraising and relationship management solutions, such as Blackbaud Raiser's Edge NXT and Blackbaud CRM, Blackbaud eTapestry, Blackbaud TeamRaiser, JustGiving, and Blackbaud Guided Fundraising and Blackbaud Volunteer Network Fundraising; marketing and engagement solutions, including Blackbaud Luminate Online, Blackbaud Online Express, and Blackbaud School Website System; and financial management solutions comprising Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid Management. It also provides grant and award management solutions, consisting of Blackbaud Grantmaking and Blackbaud Award Management; organizational and program management, such as Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, Blackbaud Altru, and Blackbaud Church Management; social responsibility solutions, which includes YourCause GrantsConnect and YourCause CSRconnect; Blackbaud Merchant Services and Blackbaud Purchase Cards payment services; and Blackbaud's Intelligence for Good solutions, as well as donor acquisition, prospect research, data enrichment, and benchmarking and performance management solutions and services. It sells its solutions and related services through its direct sales force. Blackbaud, Inc. was founded in 1981 and is headquartered in Charleston, South Carolina.

Receive News & Ratings for American Software Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Software and related companies with MarketBeat.com's FREE daily email newsletter.