Analyzing Trend Micro (OTCMKTS:TMICY) & Blackbaud (NASDAQ:BLKB)

Blackbaud (NASDAQ:BLKB) and Trend Micro (OTCMKTS:TMICY) are both mid-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Insider & Institutional Ownership

94.2% of Blackbaud shares are held by institutional investors. Comparatively, 0.1% of Trend Micro shares are held by institutional investors. 2.0% of Blackbaud shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blackbaud	10.19%	175.57%	5.98%
Trend Micro	12.51%	29.70%	9.09%

Valuation & Earnings

This table compares Blackbaud and Trend Micro”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackbaud	$1.13 billion	1.98	$114.97 million	$2.38	20.39
Trend Micro	$1.85 billion	2.59	$230.92 million	$1.75	19.38

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Blackbaud and Trend Micro, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackbaud	1	1	0	1	2.33
Trend Micro	0	0	0	0	0.00

Blackbaud presently has a consensus target price of $56.25, suggesting a potential upside of 15.88%. Given Blackbaud’s stronger consensus rating and higher probable upside, analysts plainly believe Blackbaud is more favorable than Trend Micro.

Volatility and Risk

Blackbaud has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Trend Micro has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Summary

Blackbaud beats Trend Micro on 9 of the 14 factors compared between the two stocks.

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.

About Trend Micro

Trend Micro Incorporated develops and sells security-related software for computers and related services in Japan and internationally. The company offers platforms, such as vision one platform, attack surface management, extended detection and response (XDR), cloud security, endpoint security, network security, email security, OT/ICS security, and threat intelligence. It also provides services packages, managed XDR, incident response, and support services. Additionally, the company serves 5G networks, healthcare, manufacturing, oil and gas, electric utility, and automotive industries. The company was incorporated in 1965 and is headquartered in Tokyo, Japan.