Comparing BlackLine (NASDAQ:BL) and PAR Technology (NYSE:PAR)

PAR Technology (NYSE:PAR) and BlackLine (NASDAQ:BL) are both small-cap technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Profitability

This table compares PAR Technology and BlackLine’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PAR Technology	-14.52%	-1.62%	-0.97%
BlackLine	4.75%	20.89%	4.19%

Institutional & Insider Ownership

95.1% of BlackLine shares are held by institutional investors. 2.3% of PAR Technology shares are held by insiders. Comparatively, 9.1% of BlackLine shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares PAR Technology and BlackLine”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PAR Technology	$496.67 million	1.29	-$84.46 million	($1.76)	-8.82
BlackLine	$700.43 million	2.47	$24.17 million	$0.57	52.23

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for PAR Technology and BlackLine, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PAR Technology	1	2	5	0	2.50
BlackLine	3	6	5	0	2.14

PAR Technology presently has a consensus price target of $24.61, suggesting a potential upside of 58.63%. BlackLine has a consensus price target of $39.50, suggesting a potential upside of 32.68%. Given PAR Technology’s stronger consensus rating and higher probable upside, equities analysts clearly believe PAR Technology is more favorable than BlackLine.

Risk and Volatility

PAR Technology has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, BlackLine has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Summary

BlackLine beats PAR Technology on 10 of the 13 factors compared between the two stocks.

About PAR Technology

PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide. The Restaurant/Retail segment offers PUNCHH, an enterprise-grade customer loyalty and engagement solution; MENU, an eCommerce platform for restaurant brands; BRINK POS, an open cloud, point-of-sale solution; PAR PAYMENT SERVICES, a merchant services business that enables electronic payment and processing services for businesses; and DATA CENTRAL, a back-office solution that leverages business intelligence and automation technologies. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and kitchen display systems, payment devices, cash drawers, printers, and other peripherals. In addition, this segment provides services, such as hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services comprising inside and outside plant services, and maintenance of infrastructure and information systems; satellite ground system support comprising operations and maintenance, sustainment, upgrades, communications security management, anomaly response/resolution, process improvement, emergency response, and disaster recovery services; and information technology infrastructure library services to the United States Department of Defense, intelligence community (IC), and other federal agencies. This segment also offers various IC support services, systems integration, situational awareness solutions, and mission readiness support services. The company was founded in 1968 and is based in New Hartford, New York.

About BlackLine

BlackLine, Inc. operates a cloud-based software platform which is designed to transform accounting and finance operations for organizations of all types and sizes. Its scalable platform supports critical accounting processes such as the financial close, account reconciliations, intercompany accounting, and controls assurance. The company was founded by Therese Tucker in May 2001 and is headquartered in Woodland Hills, CA.