Snap (NYSE:SNAP) and Blend Labs (NYSE:BLND) Head-To-Head Analysis

Snap (NYSE:SNAP) and Blend Labs (NYSE:BLND) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Institutional and Insider Ownership

47.5% of Snap shares are held by institutional investors. Comparatively, 52.6% of Blend Labs shares are held by institutional investors. 13.2% of Blend Labs shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Snap and Blend Labs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Snap	1	22	9	0	2.25
Blend Labs	0	2	5	0	2.71

Snap presently has a consensus target price of $14.31, suggesting a potential upside of 17.43%. Blend Labs has a consensus target price of $3.94, suggesting a potential upside of 3.86%. Given Snap’s higher possible upside, equities analysts clearly believe Snap is more favorable than Blend Labs.

Profitability

This table compares Snap and Blend Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Snap	-18.49%	-35.60%	-10.42%
Blend Labs	-77.63%	N/A	-40.93%

Risk & Volatility

Snap has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Blend Labs has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Valuation & Earnings

This table compares Snap and Blend Labs”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Snap	$4.61 billion	4.39	-$1.32 billion	($0.58)	-21.02
Blend Labs	$156.85 million	6.15	-$178.69 million	($0.49)	-7.74

Blend Labs has lower revenue, but higher earnings than Snap. Snap is trading at a lower price-to-earnings ratio than Blend Labs, indicating that it is currently the more affordable of the two stocks.

Summary

Blend Labs beats Snap on 9 of the 14 factors compared between the two stocks.

About Snap

Snap Inc. operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight that enable people to communicate visually through short videos and images. It also provides Spectacles, an eyewear product that connects with Snapchat and captures photos and video from a human perspective; and advertising products, including AR ads and Snap ads comprises a single image or video ads, collection ads, dynamic ads, story ads, and commercials. The company was formerly known as Snapchat, Inc. and changed its name to Snap Inc. in September 2016. Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.

About Blend Labs

Blend Labs, Inc. engages in the provision of cloud-based software platform solutions for financial services firms in the United States. It operates in two segments, Blend Platform and Title365. The company's Blend Builder Platform offers a suite of products that powers digital-first consumer journeys for mortgages, home equity loans and lines of credit, vehicle loans, personal loans, credit cards, and deposit accounts; and offers mortgage products to facilitate the homeownership journey for consumers comprising close, income verification for mortgage, homeowners' insurance, and realty. It also offers verification components to automate confirmation tasks that are needed to underwrite a loan or approve the opening of a new deposit account; decisioning components to reduce the need for human intervention by automatically applying business rules throughout an application workflow configured by a financial services firm; workflow intelligence components to manage data collection and automate tasks throughout the loan origination process; and marketplace components to enable consumers to shop for products and services presented at the precise moment of need during an application for a loan. In addition, the company, through its subsidiary, offers title search procedures for title insurance policies, escrow, and other closing and settlement services, as well as other trustee services; and provides professional and consulting services. It serves banks, credit unions, fintechs, and non-bank mortgage lenders. The company was incorporated in 2012 and is headquartered in San Francisco, California.