Financial Analysis: Blackbaud (NASDAQ:BLKB) versus MiX Telematics (NASDAQ:MIXT)

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

Dividends

Blackbaud pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. MiX Telematics pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Blackbaud pays out 25.7% of its earnings in the form of a dividend. MiX Telematics pays out 26.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. MiX Telematics has raised its dividend for 2 consecutive years. MiX Telematics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations for Blackbaud and MiX Telematics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blackbaud 1 2 0 0 1.67
MiX Telematics 0 0 0 0 N/A

Blackbaud currently has a consensus price target of $87.00, indicating a potential upside of 8.74%. Given Blackbaud’s higher probable upside, analysts clearly believe Blackbaud is more favorable than MiX Telematics.

Insider & Institutional Ownership

38.1% of MiX Telematics shares are owned by institutional investors. 1.6% of Blackbaud shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Blackbaud and MiX Telematics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blackbaud 2.25% 18.97% 4.11%
MiX Telematics 11.80% 15.49% 11.17%

Risk and Volatility

Blackbaud has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, MiX Telematics has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Valuation and Earnings

This table compares Blackbaud and MiX Telematics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blackbaud $848.61 million 4.64 $44.84 million $1.87 42.79
MiX Telematics $136.46 million 2.32 $14.75 million $0.75 18.73

Blackbaud has higher revenue and earnings than MiX Telematics. MiX Telematics 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 MiX Telematics on 10 of the 15 factors compared between the two stocks.

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.

MiX Telematics Company Profile

MiX Telematics Limited provides fleet and mobile asset management solutions through software-as-a-service delivery model. The company offers fleet solutions, including MiX Fleet Manager Premium that provides access to secure information about drivers and vehicles; MiX Fleet Manager Essential for monitoring drivers and vehicles; and MiX Asset Manager, a solution for fleet owners and managers to track and monitor vehicles. It also provides consumer solutions, including Matrix that provides vehicle tracking, telematics, and personal safety services; and Beame, a wireless device, which offers mobile asset tracking and recovery services. In addition, the company provides value added services comprising driver communication, collision prevention and reduction, satellite communication, driver identification, trailer tracking, field services management, driver engagement, fuel security, outsourced control room, and driver management solutions, as well as voice kits and keypads, and in-vehicle camera. MiX Telematics Limited has operations in Africa, the Americas, the Middle East, Australasia, Europe, and Brazil. The company was founded in 1996 and is based in Midrand, South Africa.

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