BlackLine (NASDAQ:BL) & EverCommerce (NASDAQ:EVCM) Head to Head Review

BlackLine (NASDAQ:BL) and EverCommerce (NASDAQ:EVCM) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Valuation & Earnings

This table compares BlackLine and EverCommerce”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackLine	$590.00 million	5.81	$58.17 million	$0.90	61.23
EverCommerce	$691.69 million	2.90	-$45.62 million	($0.23)	-47.26

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

Analyst Ratings

This is a breakdown of current recommendations for BlackLine and EverCommerce, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackLine	2	6	4	0	2.17
EverCommerce	1	2	8	0	2.64

BlackLine presently has a consensus target price of $61.20, indicating a potential upside of 11.05%. EverCommerce has a consensus target price of $11.45, indicating a potential upside of 5.38%. Given BlackLine’s higher probable upside, research analysts plainly believe BlackLine is more favorable than EverCommerce.

Risk & Volatility

BlackLine has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, EverCommerce has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Profitability

This table compares BlackLine and EverCommerce’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlackLine	19.46%	33.96%	4.54%
EverCommerce	-6.31%	-5.33%	-2.91%

Institutional and Insider Ownership

95.1% of BlackLine shares are held by institutional investors. Comparatively, 97.9% of EverCommerce shares are held by institutional investors. 9.9% of BlackLine shares are held by insiders. Comparatively, 11.6% of EverCommerce shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

BlackLine beats EverCommerce on 8 of the 14 factors compared between the two stocks.

About BlackLine

BlackLine, Inc. provides cloud-based solutions to automate and streamline accounting and finance operations worldwide. It offers financial close management solutions, such as account reconciliations that provides a centralized workspace for users to collaborate on account reconciliations; transaction matching that analyzes and reconciles individual transactions; task management to create and manage processes and task lists; and financial reporting analytics that enables analysis and validation of financial data. The company's also provides journal entry that allows users to generate, review, and post manual journal entries; variance analysis that monitors and identifies anomalous fluctuations in balance sheet and income statement account balances; consolidation integrity manager that manages the automated system-to-system tie-out process; compliance, an integrated solution that facilitates compliance-related initiatives, consolidates project management, and provides visibility over control self-assessments and testing; and smart close for SAP solution. In addition, it offers blackline cash application, and credit and risk, collections, disputes and deductions, and team and task management, as well as AR intelligence solutions and electronic invoicing and compliance. Further, the company provides intercompany create functionality that stores permissions and business logic exceptions by entity, service, and transaction type; intercompany balance and resolve, which records an organization's intercompany transactions; and netting and settlement that enables open intercompany transactions, which integrate with treasury systems. The company sells its solutions primarily through direct sales force to multinational corporations, large domestic enterprises, and mid-market companies across various industries. BlackLine, Inc. was incorporated in 2001 and is headquartered in Woodland Hills, California.

About EverCommerce

EverCommerce Inc., together with its subsidiaries, provides integrated software-as-a-service solutions for service-based small and medium sized businesses in the United States and internationally. The company’s solutions include business management software that offers route-based dispatching, medical practice management, and gym member management solutions; billing and payment solutions comprising e-invoicing, mobile payments, and integrated payment processing; customer experience solution, which include reputation management and messaging solutions; and marketing technology solutions that cover websites, hosting, and digital lead generation. It also provides EverPro suite of solutions in home services; EverHealth suite of solutions within health services; and EverWell suite of solutions in fitness and wellness services. In addition, the company offers professional services, such as implementation, configuration, installation, or training services. It serves home service professionals, including home improvement contractors and home maintenance technicians; physician practices and therapists in the health services industry; and personal trainers and salon owners in the fitness and wellness sectors. The company was formerly known as PaySimple Holdings, Inc. and changed its name to EverCommerce Inc. in December 2020. EverCommerce Inc. was incorporated in 2016 and is headquartered in Denver, Colorado.