Black Knight (NYSE: BKFS) and ePlus (NASDAQ:PLUS) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.
This table compares Black Knight and ePlus’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
44.7% of Black Knight shares are owned by institutional investors. Comparatively, 89.7% of ePlus shares are owned by institutional investors. 30.8% of Black Knight shares are owned by company insiders. Comparatively, 3.3% of ePlus shares are owned 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.
This is a summary of current recommendations and price targets for Black Knight and ePlus, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Black Knight presently has a consensus target price of $46.50, suggesting a potential upside of 8.01%. ePlus has a consensus target price of $41.16, suggesting a potential downside of 46.20%. Given Black Knight’s stronger consensus rating and higher probable upside, analysts plainly believe Black Knight is more favorable than ePlus.
Valuation & Earnings
This table compares Black Knight and ePlus’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ePlus||$1.33 billion||0.82||$50.55 million||$3.86||19.84|
ePlus has higher revenue and earnings than Black Knight. ePlus is trading at a lower price-to-earnings ratio than Black Knight, indicating that it is currently the more affordable of the two stocks.
About Black Knight
Black Knight Financial Services, Inc. is a holding company. The Company, through its subsidiaries, 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. The Technology segment provides applications and services, such as servicing technology and origination technology. 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.
ePlus inc. is a holding company. The Company is engaged in the business of selling, leasing, financing and managing information technology. It operates through two segments: technology and financing. The technology segment sells information technology (IT) hardware products, third-party software and maintenance contracts, its own and third-party professional and managed services, and its software. The financing segment operations primarily consist of the financing of information technology equipment, software and related services. Both segments sell to commercial entities, state and local governments, government contractors and educational institutions. The Company is a provider of IT solutions, which enable organizations to optimize their IT environment and supply chain processes. It delivers and integrates IT products and software from various vendors, and provides private, hybrid, and public cloud solutions.
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