Benefitfocus (NASDAQ: BNFT) and Bridgeline Digital (NASDAQ:BLIN) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Insider & Institutional Ownership
84.6% of Benefitfocus shares are held by institutional investors. Comparatively, 34.0% of Bridgeline Digital shares are held by institutional investors. 40.1% of Benefitfocus shares are held by company insiders. Comparatively, 33.8% of Bridgeline Digital shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for Benefitfocus and Bridgeline Digital, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Benefitfocus presently has a consensus price target of $40.00, suggesting a potential upside of 29.45%. Given Benefitfocus’ higher possible upside, analysts clearly believe Benefitfocus is more favorable than Bridgeline Digital.
Risk & Volatility
Benefitfocus has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Bridgeline Digital has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500.
Earnings and Valuation
This table compares Benefitfocus and Bridgeline Digital’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Benefitfocus||$248.19 million||3.88||-$6.36 million||($0.92)||-33.59|
|Bridgeline Digital||$15.78 million||0.76||-$832,000.00||($1.35)||-2.13|
Bridgeline Digital has higher revenue, but lower earnings than Benefitfocus. Benefitfocus is trading at a lower price-to-earnings ratio than Bridgeline Digital, indicating that it is currently the more affordable of the two stocks.
This table compares Benefitfocus and Bridgeline Digital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Benefitfocus beats Bridgeline Digital on 10 of the 12 factors compared between the two stocks.
Benefitfocus, Inc. (Benefitfocus) is a provider of cloud-based benefits management platform for consumers, employers, insurance carriers and brokers. The Benefitfocus Platform allows how organizations and individuals shop for, enroll in, manage and exchange benefits. The Company operates through two business segments: Employer, which derives its revenue from customers that use the Company’s services for the provision of benefits to their employees, and administrators acting on behalf of employers, Carrier, which derives its revenue from insurance companies that provide coverage at their own risk. Its solutions support benefits plans, including healthcare, dental, life and disability insurance, and voluntary benefits plans, such as critical illness, supplemental income and wellness programs. It provides a multi-tenant cloud-based benefits management platform to the employer and carrier markets.
About Bridgeline Digital
Bridgeline Digital, Inc. is a digital engagement company. The Company’s iAPPS platform is a Web Engagement Management (WEM) platform that integrates Web Content Management, e-commerce, e-marketing, Social Media management and Web Analytics to help marketers deliver digital experiences that engage and convert their customers across all channels. The iAPPS platform is delivered through a cloud-based Software as a Service (SaaS) multi-tenant business model, which provides customers with deployment providing maintenance, daily technical operation and support, or through a perpetual licensing business model. The iAPPS suite of products includes iAPPS Experience Manager, iAPPS Content Manager, iAPPS Commerce, iAPPS Marketier, iAPPS Analyzer, iAPPSds and iAPPS Social. It offers various services, such as digital engagement services, digital strategy services, usability design and information architecture. It provides shared hosting, dedicated hosting and SaaS hosting for its customers.
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