Financial Contrast: Black Knight Financial Services (BKI) versus Its Competitors

Black Knight Financial Services (NYSE: BKI) is one of 120 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its peers? We will compare Black Knight Financial Services to similar businesses based on the strength of its profitability, valuation, risk, earnings, institutional ownership, analyst recommendations and dividends.

Volatility & Risk

Black Knight Financial Services has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Black Knight Financial Services’ peers have a beta of 0.85, indicating that their average share price is 15% less volatile than the S&P 500.

Profitability

This table compares Black Knight Financial Services and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Knight Financial Services 4.31% 9.10% 4.53%
Black Knight Financial Services Competitors -44.95% -27.01% -9.57%

Valuation & Earnings

This table compares Black Knight Financial Services and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Black Knight Financial Services $1.03 billion $45.80 million 71.00
Black Knight Financial Services Competitors $2.28 billion $423.93 million 413.08

Black Knight Financial Services’ peers have higher revenue and earnings than Black Knight Financial Services. Black Knight Financial Services is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

45.1% of Black Knight Financial Services shares are owned by institutional investors. Comparatively, 60.5% of shares of all “Software” companies are owned by institutional investors. 30.8% of Black Knight Financial Services shares are owned by company insiders. Comparatively, 17.8% of shares of all “Software” companies are owned by company 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.

Analyst Recommendations

This is a breakdown of current ratings for Black Knight Financial Services and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Knight Financial Services 0 1 3 0 2.75
Black Knight Financial Services Competitors 282 2093 4427 86 2.63

Black Knight Financial Services currently has a consensus price target of $46.25, suggesting a potential upside of 0.22%. As a group, “Software” companies have a potential upside of 3.89%. Given Black Knight Financial Services’ peers higher probable upside, analysts plainly believe Black Knight Financial Services has less favorable growth aspects than its peers.

Summary

Black Knight Financial Services peers beat Black Knight Financial Services on 7 of the 13 factors compared.

Black Knight Financial Services Company Profile

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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