Critical Comparison: Materialise (NASDAQ:MTLS) vs. Blackbaud (NASDAQ:BLKB)

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Materialise $209.16 million 5.73 -$8.14 million ($0.07) -327.00
Blackbaud $913.22 million 4.04 $7.72 million $1.56 48.48

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

Insider & Institutional Ownership

37.6% of Materialise shares are held by institutional investors. Comparatively, 100.0% of Blackbaud shares are held by institutional investors. 1.8% of Blackbaud shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Materialise has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Blackbaud has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Materialise -4.70% -3.07% -1.25%
Blackbaud 0.32% 15.89% 3.70%

Analyst Ratings

This is a breakdown of current ratings for Materialise and Blackbaud, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Materialise 1 1 1 0 2.00
Blackbaud 0 3 2 0 2.40

Materialise currently has a consensus price target of $32.00, suggesting a potential upside of 39.80%. Blackbaud has a consensus price target of $81.00, suggesting a potential upside of 7.10%. Given Materialise’s higher probable upside, equities research analysts clearly believe Materialise is more favorable than Blackbaud.

Summary

Blackbaud beats Materialise on 12 of the 14 factors compared between the two stocks.

Materialise Company Profile

Materialise NV provides additive manufacturing and medical software, and 3D printing services in Europe, the Americas, Europe and Africa, and the Asia-Pacific. The company's Materialise Software segment offers software through programs and platforms that enable and enhance the functionality of 3D printers and of 3D printing operations. Its software interfaces between various types of 3D printers; and various software applications and capturing technologies, including computer-aided design packages and 3D scanners. This segment serves 3D printing machine original equipment manufacturers; manufacturers in automotive, aerospace, consumer goods, and hearing aid industries; and 3D printing service bureaus through its sales force, Website, and third-party distributors. Its Materialise Medical segment provides medical software that allows medical-image based analysis and engineering, as well as patient-specific design of surgical devices and implants. It serves medical device companies, hospitals, universities, and industrial companies through its direct sales force, Website, and picture archiving and communication system partners. The company's Materialise Manufacturing segment provides 3D printing services, design and engineering services, and rapid prototyping and additive manufacturing of production parts to industrial and commercial customers. It has collaboration agreements with Zimmer Biomet Holdings, Inc.; Encore Medical, L.P.; DePuy Synthes Companies of Johnson & Johnson; Global Orthopaedic Technology Pty Ltd; Limacorporate Spa; Mathys AG; Howmedica Osteonics Corp.; Corin Ltd.; and Fluidda, as well as a partnership with Sigma Labs, Inc. The company was founded in 1990 and is headquartered in Leuven, Belgium.

Blackbaud Company Profile

Blackbaud, Inc. provides cloud software solutions to nonprofits, foundations, companies, education institutions, healthcare organizations, and other social good entities in the United States and internationally. The company offers fundraising and relationship management solutions, such as Blackbaud Raiser's Edge NXT and Blackbaud CRM, Blackbaud TeamRaiser, Blackbaud Peer-to-Peer Fundraising, and Blackbaud Guided Fundraising and Blackbaud Volunteer Network Fundraising; marketing and engagement solutions, including Blackbaud Luminate Online, Blackbaud Luminate Advocacy, Blackbaud Online Express, and Blackbaud School Website System; and financial management solutions comprising Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid Management. It also provides grant and award management solutions, consisting of Blackbaud Grantmaking, Blackbaud Outcomes, and Blackbaud Award Management; organizational and program management, such as Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, Blackbaud Altru, and Blackbaud Church Management; social responsibility solutions, which includes YourCause Grants Connect and YourCause CSR; Blackbaud Merchant Services and Blackbaud Purchase Cards payment services; and Blackbaud's Intelligence for Good solutions, as well as donor acquisition, prospect research, data enrichment, and benchmarking and performance management solutions and services. It sells its solutions and related services through its direct sales force. The company was founded in 1981 and is headquartered in Charleston, South Carolina.

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