Head-To-Head Review: Shopify (NYSE:SHOP) and Blackbaud (NASDAQ:BLKB)

Shopify (NYSE:SHOP) and Blackbaud (NASDAQ:BLKB) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

Shopify has a beta of 2.36, indicating that its share price is 136% more volatile than the S&P 500. Comparatively, Blackbaud has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Earnings and Valuation

This table compares Shopify and Blackbaud”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$8.21 billion	16.81	$132.00 million	$1.07	99.96
Blackbaud	$1.11 billion	3.99	$1.82 million	$1.02	85.28

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shopify	16.84%	11.60%	9.37%
Blackbaud	4.61%	20.34%	4.51%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Shopify and Blackbaud, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	1	16	23	1	2.59
Blackbaud	0	4	1	0	2.20

Shopify currently has a consensus price target of $94.95, suggesting a potential downside of 11.23%. Blackbaud has a consensus price target of $86.67, suggesting a potential downside of 0.36%. Given Blackbaud’s higher probable upside, analysts plainly believe Blackbaud is more favorable than Shopify.

Institutional & Insider Ownership

69.3% of Shopify shares are held by institutional investors. Comparatively, 94.2% of Blackbaud shares are held by institutional investors. 2.0% of Blackbaud shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Shopify beats Blackbaud on 11 of the 15 factors compared between the two stocks.

About Shopify

Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company’s platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping, and securing working capital. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada.

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.