Comparing Blackbaud (NASDAQ:BLKB) and UiPath (NYSE:PATH)

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

Institutional and Insider Ownership

62.5% of UiPath shares are owned by institutional investors. Comparatively, 94.2% of Blackbaud shares are owned by institutional investors. 22.4% of UiPath shares are owned by company insiders. Comparatively, 2.0% of Blackbaud shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

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

Analyst Ratings

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

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

UiPath presently has a consensus target price of $17.94, indicating a potential upside of 44.63%. Blackbaud has a consensus target price of $92.00, indicating a potential upside of 12.51%. Given UiPath’s higher possible upside, equities analysts plainly believe UiPath is more favorable than Blackbaud.

Risk and Volatility

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

Earnings and Valuation

This table compares UiPath and Blackbaud’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UiPath	$1.31 billion	5.43	-$89.88 million	($0.16)	-77.53
Blackbaud	$1.14 billion	3.71	$1.82 million	$0.41	199.44

Blackbaud has lower revenue, but higher earnings 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.

Summary

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

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.

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.