Snap (NYSE:SNAP – Get Free Report) and Blend Labs (NYSE:BLND – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.
Earnings and Valuation
This table compares Snap and Blend Labs”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Snap | $4.61 billion | 4.64 | -$1.32 billion | ($0.58) | -22.21 |
| Blend Labs | $156.85 million | 5.92 | -$178.69 million | ($0.49) | -7.45 |
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.
Volatility & Risk
Analyst Ratings
This is a summary of current recommendations and price targets for Snap and Blend Labs, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Snap | 1 | 22 | 8 | 0 | 2.23 |
| Blend Labs | 0 | 2 | 5 | 0 | 2.71 |
Snap presently has a consensus target price of $14.25, suggesting a potential upside of 11.24%. Blend Labs has a consensus target price of $3.94, suggesting a potential upside of 8.89%. Given Snap’s higher probable upside, equities analysts plainly believe Snap is more favorable than Blend Labs.
Insider & Institutional Ownership
47.5% of Snap shares are owned by institutional investors. Comparatively, 52.6% of Blend Labs shares are owned by institutional investors. 22.7% of Snap shares are owned by company insiders. Comparatively, 13.2% of Blend Labs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
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% | -35.63% | -10.44% |
| Blend Labs | -77.63% | N/A | -40.93% |
Summary
Blend Labs beats Snap on 8 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.
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