QAD (NASDAQ:QADB) & Blackbaud (NASDAQ:BLKB) Financial Review

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

Profitability

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

Net Margins Return on Equity Return on Assets
QAD -2.70% 2.27% 0.96%
Blackbaud 3.04% 20.51% 4.59%

Institutional and Insider Ownership

1.8% of QAD shares are owned by institutional investors. 67.4% of QAD shares are owned by company insiders. Comparatively, 1.6% of Blackbaud shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QAD 0 0 1 0 3.00
Blackbaud 1 2 0 0 1.67

Blackbaud has a consensus target price of $87.00, indicating a potential upside of 2.24%. Given Blackbaud’s higher possible upside, analysts clearly believe Blackbaud is more favorable than QAD.

Risk and Volatility

QAD has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Blackbaud has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Valuation and Earnings

This table compares QAD and Blackbaud’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QAD $333.02 million 2.19 $10.43 million N/A N/A
Blackbaud $848.61 million 4.93 $44.84 million $1.87 45.50

Blackbaud has higher revenue and earnings than QAD.

Dividends

QAD pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Blackbaud pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. Blackbaud pays out 25.7% of its earnings in the form of a dividend.

Summary

Blackbaud beats QAD on 8 of the 15 factors compared between the two stocks.

QAD Company Profile

QAD Inc. provides enterprise software solutions for manufacturing companies in the automotive, life sciences, consumer products, food and beverage, high technology, and industrial products industries worldwide. The company offers QAD Cloud ERP and QAD Enterprise Applications, an integrated suite of software applications, which support the core business processes. Its QAD Enterprise Applications include software solutions, such as QAD Financials to manage and control finance and accounting processes; QAD Customer Management for manufacturers to acquire new customers; QAD Manufacturing, which supports manufacturing business processes; QAD Automation Solutions that improve manufacturers' material transaction processing; QAD Demand and Supply Chain Planning that fulfills materials planning and logistics requirements; QAD Supply Chain Execution that offers tools to support inventory and warehouse management; and QAD Transportation Management to manage and optimize outside carriers for shipments. The company's QAD Enterprise Applications also comprise QAD Service and Support that handles service calls, manages service queues, and organizes mobile field resources; QAD Enterprise Asset Management to manage, maintain, and install capital equipment; Action Centers with Embedded Analytics; and QAD Analytics that provides data to measure performance. It also offers QAD Enterprise Quality Management that provides quality management and regulatory compliance solutions; QAD Interoperability, which integrates QAD Enterprise Applications with other non-QAD core business applications; and QAD Internationalization, which supports companies that manufacture and distribute their products worldwide. In addition, it provides customer support, product updates, maintenance, and professional services. The company markets its products through direct and indirect sales channels; and distributors and sales agents. QAD Inc. was founded in 1979 and is headquartered in Santa Barbara, California.

Blackbaud Company Profile

Blackbaud, Inc. provides cloud software solutions to nonprofits, foundations, companies, education institutions, healthcare organizations, individual change agents, and other charitable giving entities. The company offers fundraising and relationship management solutions and services, including Blackbaud Raiser's Edge NXT, Blackbaud CRM, Blackbaud Luminate CRM, Blackbaud eTapestry, Blackbaud TeamRaiser, everydayhero, Blackbaud Peer-to-Peer Fundraising, and Blackbaud Guided Fundraising; and marketing and engagement solutions, such as Blackbaud Luminate Online, Blackbaud Online Express, Blackbaud NetCommunity, Blackbaud Attentive.ly, and Blackbaud School Website System. It also provides Blackbaud Financial Edge NXT, Blackbaud Smart Tuition, and Blackbaud Smart Aid financial management solutions and services; and Blackbaud Grantmaking, Blackbaud Award Management, FIMS, and Blackbaud Outcomes grant and award management solutions. In addition, the company offers organizational and program management solutions and services comprising Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, Blackbaud Altru, and Blackbaud Church Management; and Blackbaud Employee Giving and Blackbaud Employee Volunteering, and YourCause corporate social responsibility solutions. Further, it provides Blackbaud's SKY Intelligence analytics solutions, as well as donor acquisition, prospect research, data enrichment, and benchmarking and performance management solutions and services; and Blackbaud Merchant Services and Blackbaud Purchase Cards payment services. Additionally, the company offers customer support and maintenance, professional and managed, and training services. It has operations primarily in the United States, the United Kingdom, Canada, and Australia. The company was founded in 1981 and is headquartered in Charleston, South Carolina.

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