GitLab (NASDAQ:GTLB) and Hitek Global (NASDAQ:HKIT) Financial Contrast

Hitek Global (NASDAQ:HKIT) and GitLab (NASDAQ:GTLB) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Earnings and Valuation

This table compares Hitek Global and GitLab”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hitek Global	$4.56 million	4.20	$1.05 million	N/A	N/A
GitLab	$579.91 million	18.98	-$424.17 million	($0.32)	-211.97

Hitek Global has higher earnings, but lower revenue than GitLab.

Profitability

This table compares Hitek Global and GitLab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hitek Global	N/A	N/A	N/A
GitLab	-6.83%	-11.72%	-5.98%

Analyst Recommendations

This is a breakdown of recent ratings for Hitek Global and GitLab, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hitek Global	0	0	0	0	0.00
GitLab	0	3	23	1	2.93

GitLab has a consensus price target of $76.42, suggesting a potential upside of 12.67%. Given GitLab’s stronger consensus rating and higher probable upside, analysts clearly believe GitLab is more favorable than Hitek Global.

Insider and Institutional Ownership

1.2% of Hitek Global shares are owned by institutional investors. Comparatively, 95.0% of GitLab shares are owned by institutional investors. 21.4% of GitLab shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Hitek Global has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, GitLab has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Summary

GitLab beats Hitek Global on 8 of the 13 factors compared between the two stocks.

About Hitek Global

Hitek Global Inc. provides information technology (IT) consulting and solutions to small and medium businesses in various industry sectors in China. It offers anti-counterfeiting tax control system (ACTCS) tax devices, including golden tax disk and printers, ACTCS services, and IT services; and sells software and hardware to large businesses, such as laptops, printers, desktop computers, and related accessories, as well as Internet servers, cameras, and monitors. The company was founded in 1996 and is headquartered in Xiamen, China.

About GitLab

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. The company helps organizations to plan, build, secure, and deploy software to drive business outcomes. It also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. GitLab Inc. was founded in 2011 and is headquartered in San Francisco, California.