Scientific Learning (OTCMKTS:SCIL) & Blackbaud (NASDAQ:BLKB) Financial Analysis

Scientific Learning (OTCMKTS:SCIL) and Blackbaud (NASDAQ:BLKB) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

94.2% of Blackbaud shares are owned by institutional investors. 16.1% of Scientific Learning shares are owned by company insiders. Comparatively, 2.0% of Blackbaud shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Scientific Learning and Blackbaud, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scientific Learning	0	0	0	0	0.00
Blackbaud	1	2	0	0	1.67

Blackbaud has a consensus target price of $56.25, indicating a potential upside of 50.04%. Given Blackbaud’s stronger consensus rating and higher probable upside, analysts clearly believe Blackbaud is more favorable than Scientific Learning.

Valuation and Earnings

This table compares Scientific Learning and Blackbaud”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scientific Learning	N/A	N/A	N/A	N/A	N/A
Blackbaud	$1.13 billion	1.53	$114.97 million	$2.38	15.75

Blackbaud has higher revenue and earnings than Scientific Learning.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Scientific Learning	N/A	N/A	N/A
Blackbaud	10.19%	175.57%	5.98%

Summary

Blackbaud beats Scientific Learning on 7 of the 8 factors compared between the two stocks.

About Scientific Learning

Scientific Learning Corporation, an education company, develops, distributes, and licenses technology that accelerates learning by enhancing the processing efficiency of the brain. Its flagship Fast ForWord, a Web-based product, comprises Fast ForWord Language for elementary learners and Fast ForWord Literacy for adolescent learners that build foundational reading and language skills to help districts move below grade level learners to learn in the general classroom, and Fast ForWord Reading, which builds learning capacity through developing cognitive skills using exercises focusing on phonemic awareness, phonics and decoding, spelling, vocabulary, fluency, and comprehension. The company also provides Reading Assistant that offers a one-on-one reading tutor for learners; ResultsNow!, an online hosting and support solution for its Fast ForWord and Reading Assistant products; and BrainPro services targeted at learners who are below grade level. In addition, it offers on-site product training, technical installation, implementation management, consulting, and Web-based synchronous and asynchronous professional development services; and software technical update releases, as well as extensive telephone, email, and chat support services. The company offers learning solutions primarily to educational institutions, speech and language clinics, learning centers, and parents. Scientific Learning Corporation was founded in 1995 and is headquartered in Oakland, California.

About Blackbaud

Blackbaud, Inc. provides cloud software solutions to nonprofits, foundations, education institutions, and healthcare organizations in the United States and internationally. The company offers fundraising and engagement solutions, such as Blackbaud Raiser's Edge NXT, Blackbaud CRM, Blackbaud eTapestry, Blackbaud Luminate Online, Blackbaud TeamRaiser, JustGiving, Blackbaud Fundraiser Performance Management, Blackbaud Guided Fundraising, and Blackbaud Altru; and financial management solutions comprising Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid and Billing Management. It also provides grant and award management solutions, consisting of Blackbaud Grantmaking and Blackbaud Award Management; education solutions, such as Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, and Blackbaud School Website System; social responsibility solutions, which includes YourCause GrantsConnect and YourCause CSRconnect, and EVERFI; Blackbaud Merchant Services and Blackbaud Purchase Cards payment services; and Blackbaud's Intelligence for Good solutions, as well as Data Health, Insights, and Performance solutions and services. The company sells its solutions and related services through its direct sales force. Blackbaud, Inc. was founded in 1981 and is headquartered in Charleston, South Carolina.