Black Knight (NYSE:BKI) and Digital Turbine (APPS) Critical Comparison

Digital Turbine (NASDAQ: APPS) and Black Knight (NYSE:BKI) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Digital Turbine and Black Knight’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Digital Turbine -20.41% -23.85% -13.37%
Black Knight 16.64% 3.63% 4.72%

Earnings & Valuation

This table compares Digital Turbine and Black Knight’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Digital Turbine $91.55 million 1.56 -$24.26 million ($0.30) -6.60
Black Knight $1.03 billion 7.26 $45.80 million $0.65 75.15

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

Institutional and Insider Ownership

20.8% of Digital Turbine shares are held by institutional investors. Comparatively, 28.1% of Black Knight shares are held by institutional investors. 4.8% of Digital Turbine shares are held by company insiders. Comparatively, 5.0% of Black Knight shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Digital Turbine and Black Knight, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Digital Turbine 0 0 4 0 3.00
Black Knight 0 2 7 0 2.78

Digital Turbine currently has a consensus target price of $1.75, suggesting a potential downside of 11.62%. Black Knight has a consensus target price of $48.88, suggesting a potential upside of 0.05%. Given Black Knight’s higher probable upside, analysts clearly believe Black Knight is more favorable than Digital Turbine.

Summary

Black Knight beats Digital Turbine on 12 of the 13 factors compared between the two stocks.

About Digital Turbine

Digital Turbine, Inc. is engaged in delivering end-to-end products and solutions for mobile operators, application advertisers, device original equipment manufacturers (OEMs) and other third parties to enable them to monetize mobile content. The Company operates its business in two operating segments: Advertising and Content. The Advertising segment consists of two businesses: Operator and OEM (O&O) and Advertiser and Publisher (A&P). The O&O business is an advertiser solution for carrier and OEM inventory consisting of services, such as Ignite, a mobile device management platform and Discover, an intelligent application discovery platform. Its A&P business is a mobile user acquisition network across the world consisting of services, such as syndicated network and real time bidding (RTB). The Content segment consists of services, including Marketplace, which is an application and content store, and Pay, which is a content management and mobile payment solution.

About Black Knight

Black Knight, Inc. provides integrated technology, workflow automation, and data and analytics to the mortgage and real estate industries. The Company’s segments include Technology, and Data and Analytics. The Company’s Technology segment offers software and hosting solutions that support loan servicing, loan origination and settlement services. Its Data and Analytics segment offers data and analytics solutions to the mortgage, real estate and capital markets industries. These solutions include property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, prepayment and default models, lead generation and other data solutions.

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