CommerceHub (CHUBA) & Blackbaud (BLKB) Head-To-Head Review

Blackbaud (NASDAQ: BLKB) and CommerceHub (NASDAQ:CHUBA) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Blackbaud 6.82% 31.25% 6.59%
CommerceHub 11.79% 37.41% 18.52%

Analyst Ratings

This is a summary of current recommendations for Blackbaud and CommerceHub, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blackbaud 1 4 4 0 2.33
CommerceHub 0 1 4 0 2.80

Blackbaud presently has a consensus target price of $88.50, suggesting a potential downside of 10.99%. CommerceHub has a consensus target price of $26.25, suggesting a potential upside of 25.36%. Given CommerceHub’s stronger consensus rating and higher possible upside, analysts plainly believe CommerceHub is more favorable than Blackbaud.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Blackbaud $730.82 million 6.54 $41.51 million $1.09 91.22
CommerceHub $100.55 million 9.01 $9.09 million $0.28 74.79

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

Dividends

Blackbaud pays an annual dividend of $0.48 per share and has a dividend yield of 0.5%. CommerceHub does not pay a dividend. Blackbaud pays out 44.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

25.5% of CommerceHub shares are held by institutional investors. 2.2% of Blackbaud shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

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

About Blackbaud

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.

About CommerceHub

CommerceHub, Inc. is a provider of cloud-based e-commerce fulfillment and marketing solutions that integrate supply, demand and delivery for retailers and consumer brands, manufacturers and distributors. The Company’s end-to-end solutions are provided through the CommerceHub software platform, a hub that streamlines integration and enables transactions among its retailer and supplier customers and their other trading partners, while also enabling them to access the online marketplaces, search engines, social and product advertising and other digital marketing channels where consumers browse and buy. Its solutions also help its customers integrate with the third-party logistics (3PL) providers, including fulfillment and delivery providers that take purchased products to the consumer’s doorstep. The Company’s solutions include Supply Solutions, Demand Solutions and Delivery Solutions.

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