Critical Survey: Roblox (NYSE:RBLX) and Blackbaud (NASDAQ:BLKB)

Roblox (NYSE:RBLX – Get Rating) and Blackbaud (NASDAQ:BLKB – Get Rating) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roblox	-41.54%	-200.01%	-18.44%
Blackbaud	-4.29%	7.34%	1.92%

Risk & Volatility

Roblox has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, Blackbaud has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Roblox and Blackbaud, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roblox	7	9	10	0	2.12
Blackbaud	0	1	0	0	2.00

Roblox presently has a consensus target price of $37.75, suggesting a potential downside of 13.60%. Blackbaud has a consensus target price of $66.00, suggesting a potential upside of 15.51%. Given Blackbaud’s higher probable upside, analysts clearly believe Blackbaud is more favorable than Roblox.

Institutional and Insider Ownership

72.4% of Roblox shares are owned by institutional investors. Comparatively, 97.4% of Blackbaud shares are owned by institutional investors. 28.2% of Roblox shares are owned by company insiders. Comparatively, 1.7% of Blackbaud shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Roblox and Blackbaud’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roblox	$2.23 billion	10.87	-$924.37 million	($1.55)	-28.19
Blackbaud	$1.06 billion	2.87	-$45.41 million	($0.88)	-64.93

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

Summary

Blackbaud beats Roblox on 7 of the 13 factors compared between the two stocks.

About Roblox

(Get Rating)

Roblox Corporation develops and operates an online entertainment platform. The company offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D digital world; Roblox Education for learning experiences; and Roblox Cloud, which provides services and infrastructure that power the human co-experience platform. It serves customers in the United States, the United Kingdom, Canada, Europe, China, the Asia-Pacific, and internationally. The company was incorporated in 2004 and is headquartered in San Mateo, California.

About Blackbaud

(Get Rating)

Blackbaud, Inc. engages in the provision of cloud-based and on-premises software solutions and related services for the global philanthropic community. It offers solutions for fundraising and constituent relationship management (CRM), marketing, advocacy, accounting, peer-to-peer fundraising, corporate social responsibility (CSR), school management, ticketing, financial management, payment processing, and analytics. The company was founded by Anthony E. Bakker in 1981 and is headquartered in Charleston, SC.