Citrix Systems (NASDAQ: CTXS) and Blackbaud (NASDAQ:BLKB) are both mid-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
Insider & Institutional Ownership
93.6% of Citrix Systems shares are held by institutional investors. 0.4% of Citrix Systems shares are held by company insiders. Comparatively, 2.2% of Blackbaud shares are held by company 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.
This table compares Citrix Systems and Blackbaud’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Citrix Systems and Blackbaud’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Citrix Systems||$3.44 billion||3.55||$987.12 million||$2.97||27.14|
|Blackbaud||$757.18 million||5.48||$131.91 million||$1.02||87.16|
Citrix Systems has higher revenue and earnings than Blackbaud. Citrix Systems is trading at a lower price-to-earnings ratio than Blackbaud, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Citrix Systems has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Blackbaud has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
Blackbaud pays an annual dividend of $0.48 per share and has a dividend yield of 0.5%. Citrix Systems does not pay a dividend. Blackbaud pays out 47.1% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for Citrix Systems and Blackbaud, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Citrix Systems currently has a consensus target price of $89.60, suggesting a potential upside of 11.14%. Blackbaud has a consensus target price of $85.25, suggesting a potential downside of 4.11%. Given Citrix Systems’ higher possible upside, equities analysts plainly believe Citrix Systems is more favorable than Blackbaud.
Citrix Systems beats Blackbaud on 11 of the 16 factors compared between the two stocks.
Citrix Systems Company Profile
Citrix Systems, Inc. offers Enterprise and Service Provider products, which include Workspace Services solutions and Delivery Networking products. The Company’s Enterprise and Service Provider products include Cloud Services solutions, and related license updates and maintenance, support and professional services. The Company’s NetScaler nCore Technology is an architecture that enables execution of multiple packet engines in parallel. The Company’s workspace services include Application Virtualization and virtual desktop infrastructure (VDI), Enterprise Mobility Management and Citrix Workspace Suite. The Company’s NetScaler ADC is a software-defined application delivery controller (ADC) and load balancer. The Company’s Cloud Services include ShareFile and Citrix Cloud. It provides various ways for customers to receive upgrades, support and maintenance for products, which include Software Maintenance, Subscription Advantage, Technical Support Services and Hardware Maintenance.
Blackbaud Company Profile
Blackbaud, Inc. is a cloud software company. The Company offers a range of cloud and on-premise solutions, as well as a resource network that empowers and connects organizations of all sizes. Its segments include the General Markets Business Unit (the GMBU), the Enterprise Customer Business Unit (the ECBU) and the International Business Unit (the IBU). The GMBU is focused on marketing, sales, delivery and support to all emerging and mid-sized prospects and customers in North America. The ECBU is focused on marketing, sales, delivery and support to all large and/or strategic prospects and customers in North America. The IBU is focused on marketing, sales, delivery and support to all prospects and customers outside of North America. It operates in four geographic regions: the United States, Canada, Europe and Australia. Its portfolio of software and services supports nonprofit fundraising and relationship management, digital marketing, advocacy, accounting, payments and analytics.
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