Critical Review: Blackhawk Network (HAWK) versus BLUCORA INC Common Stock (BCOR)

Blackhawk Network (NASDAQ: HAWK) and BLUCORA INC Common Stock (NASDAQ:BCOR) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, valuation, risk, dividends and analyst recommendations.

Valuation & Earnings

This table compares Blackhawk Network and BLUCORA INC Common Stock’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blackhawk Network $2.23 billion 1.16 -$155.76 million ($2.77) -16.30
BLUCORA INC Common Stock $509.56 million 3.48 $27.03 million $1.22 30.94

BLUCORA INC Common Stock has lower revenue, but higher earnings than Blackhawk Network. Blackhawk Network is trading at a lower price-to-earnings ratio than BLUCORA INC Common Stock, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

90.7% of Blackhawk Network shares are owned by institutional investors. Comparatively, 94.5% of BLUCORA INC Common Stock shares are owned by institutional investors. 3.8% of Blackhawk Network shares are owned by insiders. Comparatively, 2.9% of BLUCORA INC Common Stock shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Blackhawk Network and BLUCORA INC Common Stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blackhawk Network -7.01% -21.14% -5.06%
BLUCORA INC Common Stock 7.84% 13.11% 7.13%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Blackhawk Network and BLUCORA INC Common Stock, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blackhawk Network 0 13 1 0 2.07
BLUCORA INC Common Stock 0 1 4 0 2.80

Blackhawk Network presently has a consensus target price of $46.73, indicating a potential upside of 3.49%. BLUCORA INC Common Stock has a consensus target price of $36.31, indicating a potential downside of 3.82%. Given Blackhawk Network’s higher possible upside, equities analysts plainly believe Blackhawk Network is more favorable than BLUCORA INC Common Stock.

Risk & Volatility

Blackhawk Network has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, BLUCORA INC Common Stock has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500.

Summary

BLUCORA INC Common Stock beats Blackhawk Network on 10 of the 14 factors compared between the two stocks.

Blackhawk Network Company Profile

Blackhawk Network Holdings, Inc. provides a range of prepaid gift, telecom, and debit cards in physical and electronic forms; and related prepaid products and payment services in the United States and internationally. It operates through three segments: U.S. Retail, International, and Incentives & Rewards. The company distributes closed loop gift cards in the areas of digital media and e-commerce, dining, electronics, entertainment, fashion, transportation, home improvement, and travel; non-reloadable open loop gift cards; and prepaid wireless or cellular cards that are used to load airtime onto the prepaid handsets, as well as sells handsets. It also offers general purpose reloadable (GPR) cards; and Reloadit, a GPR reload network product that allows consumers to reload funds onto their previously purchased third-party GPR cards. In addition, the company provides incentives solutions comprising solutions, which allow businesses to manage consumer incentive programs, including in-store, online, or mail-in rebate processing; a hosted software platform for managing sales person and sales channel incentive programs; bulk prepaid card ordering systems and Websites to allow business and incentive program clients to use prepaid cards as part of their incentive and reward programs; direct-to-participant fulfillment services for prepaid cards, checks, and merchandise; and employee engagement programs. Further, it offers Cardpool that provides an online marketplace and various retail locations to sell unused gift cards; digital services for online and mobile applications; and card production and processing services to its prepaid gift and telecom content providers. The company distributes its products through grocery, convenience, specialty, and online retailers. Blackhawk Network Holdings, Inc. was founded in 2001 and is headquartered in Pleasanton, California.

BLUCORA INC Common Stock Company Profile

Blucora, Inc. provides technology-enabled financial solutions to consumers, small business owners, and tax professionals in the United States. The company operates through two segments, Wealth Management and Tax Preparation. The Wealth Management segment offers an integrated platform of brokerage, investment advisory, and insurance services to financial advisors. The Tax Preparation segment provides digital do-it-yourself tax preparation solutions for consumers and small business owners through TaxAct.com; and ancillary services, including refund payment transfer, audit defense, stored value cards, retirement investment accounts, tax preparation support services, data archive services, and e-filing services. This segment also offers professional tax preparer software. The company was formerly known as InfoSpace, Inc. and changed its name to Blucora, Inc. in June 2012. Blucora, Inc. was founded in 1996 and is headquartered in Irving, Texas.

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