Black Knight (BKI) & SciQuest (SQI) Critical Survey

SciQuest (NASDAQ: SQI) and Black Knight (NYSE:BKI) are both software – nec companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for SciQuest and Black Knight, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SciQuest 0 0 0 0 N/A
Black Knight 0 1 3 0 2.75

Black Knight has a consensus target price of $46.25, indicating a potential upside of 4.52%. Given Black Knight’s higher possible upside, analysts plainly believe Black Knight is more favorable than SciQuest.

Profitability

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

Net Margins Return on Equity Return on Assets
SciQuest 3.93% 2.23% 1.59%
Black Knight 4.31% 9.10% 4.53%

Institutional and Insider Ownership

26.3% of Black Knight shares are owned by institutional investors. 5.0% of Black Knight shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SciQuest N/A N/A N/A $0.11 161.36
Black Knight $1.03 billion 6.57 $45.80 million $0.96 46.09

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

Summary

Black Knight beats SciQuest on 9 of the 10 factors compared between the two stocks.

About SciQuest

SciQuest, Inc. is a United States-based public provider of spend management solutions. The Company’s offers a range of solutions, such as Spend Director, Spend Radar, Sourcing Director, Advanced Sourcing Optimizer, Total Contract Manager, Total Supplier Manager, Enterprise Reagent Manager, Accounts Payable Director, Supplier Network and Portfolio Savings Manager. Its Spend Director is an e-procurement software, which allows users’ to integrate and automate processes, suppliers, compliance and workflows. Its Portfolio Savings Manager is a cloud-based savings management software that integrates project forecasting, initiative approval workflows and real-time savings. Its chemical inventory management software, Enterprise Reagent Manager (ERM), allows scientific staff in the organization to find, source and track commercial and proprietary chemicals, reagents and lab supplies. Its Total Contract Manager is a Contract Lifecycle Management solution that offers real-time updates.

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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