Financial Analysis: Blackbaud (NASDAQ:BLKB) versus UiPath (NYSE:PATH)

Blackbaud (NASDAQ:BLKB) and UiPath (NYSE:PATH) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for Blackbaud and UiPath, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackbaud	0	1	1	0	2.50
UiPath	0	16	2	0	2.11

Blackbaud presently has a consensus target price of $92.00, suggesting a potential upside of 10.25%. UiPath has a consensus target price of $17.94, suggesting a potential upside of 39.67%. Given UiPath’s higher possible upside, analysts plainly believe UiPath is more favorable than Blackbaud.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackbaud	$1.14 billion	3.78	$1.82 million	$0.41	203.54
UiPath	$1.35 billion	5.44	-$89.88 million	($0.16)	-80.28

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

Insider and Institutional Ownership

94.2% of Blackbaud shares are held by institutional investors. Comparatively, 62.5% of UiPath shares are held by institutional investors. 2.0% of Blackbaud shares are held by insiders. Comparatively, 22.4% of UiPath shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Blackbaud has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, UiPath has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blackbaud	3.64%	18.54%	4.54%
UiPath	-6.41%	-2.97%	-2.11%

Summary

Blackbaud beats UiPath on 9 of the 14 factors compared between the two stocks.

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.

About UiPath

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric. It serves banking and financial services, healthcare, insurance, public sectors, manufacturing, retail, and telecom industries. The company was founded in 2005 and is headquartered in New York, New York.