Blackbaud, Inc. (BLKB) vs Vertex, Inc. (VERX)

Blackbaud, Inc. and Vertex, Inc. are both Software Application companies. Vertex, Inc. is the larger, with a market value of $2.9B against $2.5B — 1.1× the size. Blackbaud, Inc. trades at the lower P/E: 17.0× against 511×. Vertex, Inc. grew revenue faster over the last twelve months: 10.4% against 2.21%. Blackbaud, Inc. has the higher net margin (12.9% vs −5.83%) and the higher return on invested capital (20.8% vs −2.09%). Across the 22 metrics below, Blackbaud, Inc. leads on 15 and Vertex, Inc. on 7.

Valuation

Metric BLKB VERX Software Application median
P/E 16.98 511.05 25.90
P/S 2.13 3.51 3.04
P/B 20.71 15.74 2.60
Price to free cash flow 8.86 68.40 17.17
EV/EBITDA 9.57 29.21 15.48
EV/Sales 2.63 3.65 2.89
Earnings yield 5.89% 0.20% 0.00%
Free cash flow yield 11.29% 1.46% 1.98%

Profitability

Metric BLKB VERX Software Application median
Gross margin 59.92% 64.61% 66.89%
Operating margin 20.05% (2.15%) 0.00%
Net margin 12.87% (5.83%) 0.00%
Free cash flow margin 24.09% 20.34% 5.77%
Return on equity 131.11% (21.19%) 0.00%
Return on assets 7.09% (3.94%) 0.00%
Return on invested capital 20.75% (2.09%) 0.00%

Growth

Metric BLKB VERX Software Application median
Revenue growth (TTM) 2.21% 10.44% 12.27%
EPS growth (last fiscal year) 141.73% 111.76% 32.11%
Revenue growth, 5-year CAGR 4.32% 14.84% 14.34%
Net income growth, 5-year CAGR 71.64% 0.00% 0.00%

Health

Metric BLKB VERX Software Application median
Debt to equity 8.74 1.88 0.02
Current ratio 0.68 0.75 1.53
Net debt to EBITDA 1.26 0.22 0.09

Dividend

Metric BLKB VERX Software Application median
Dividend yield — — 1.10%
Payout ratio — — 0.28

Size

Metric BLKB VERX Software Application median
Market cap 2.51b 2.85b 487.58m

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