BLKB vs CRM

For growth investors, Salesforce, Inc.

(CRM) is the stronger pick with 9. 6% revenue growth year-over-year, versus -2. 3% for Blackbaud, Inc. (BLKB). Blackbaud, Inc. (BLKB) offers the better valuation at 16. 0x trailing P/E (7. 3x forward), making it the more compelling value choice. Analysts rate Salesforce, Inc. (CRM) a "Buy" — based on 97 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Blackbaud, Inc.

(BLKB) is the cheapest at 16. 0x versus Salesforce, Inc. at 23. 9x. On forward P/E, Blackbaud, Inc. is actually cheaper at 7. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Blackbaud, Inc. wins at 0. 10x versus Salesforce, Inc. 's 1. 29x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Salesforce, Inc.

(CRM) delivered a total return of -12. 3%, compared to -43. 6% for Blackbaud, Inc. (BLKB). Over 10 years, the gap is even starker: CRM returned +154. 6% versus BLKB's -35. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Salesforce, Inc.

(CRM) is the lower-risk stock at 0. 82β versus Blackbaud, Inc. 's 0. 86β — meaning BLKB is approximately 5% more volatile than CRM relative to the S&P 500. On balance sheet safety, Salesforce, Inc. (CRM) carries a lower debt/equity ratio of 11% versus 13% for Blackbaud, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Salesforce, Inc.

(CRM) is pulling ahead at 9. 6% versus -2. 3% for Blackbaud, Inc. (BLKB). On earnings-per-share growth, the picture is similar: Blackbaud, Inc. grew EPS 142. 3% year-over-year, compared to 22. 6% for Salesforce, Inc.. Over a 3-year CAGR, CRM leads at 9. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Salesforce, Inc.

(CRM) is the more profitable company, earning 18. 0% net margin versus 10. 2% for Blackbaud, Inc. — meaning it keeps 18. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CRM leads at 21. 5% versus 16. 9% for BLKB. At the gross margin level — before operating expenses — CRM leads at 77. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Blackbaud, Inc. (BLKB) is the more undervalued stock at a PEG of 0. 10x versus Salesforce, Inc. 's 1. 29x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Blackbaud, Inc. (BLKB) trades at 7. 3x forward P/E versus 15. 8x for Salesforce, Inc. — 8. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CRM: 54. 1% to $287. 00.

In this comparison, CRM (0.

9% yield) pays a dividend. BLKB does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Salesforce, Inc.

(CRM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 82), 0. 9% yield, +154. 6% 10Y return). Both have compounded well over 10 years (CRM: +154. 6%, BLKB: -35. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: BLKB is a small-cap deep-value stock; CRM is a mid-cap quality compounder stock. CRM pays a dividend while BLKB does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.