Blend Labs (NYSE:BLND – Get Free Report) and Grab (NASDAQ:GRAB – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.
Insider and Institutional Ownership
52.6% of Blend Labs shares are owned by institutional investors. Comparatively, 55.5% of Grab shares are owned by institutional investors. 40.3% of Blend Labs shares are owned by insiders. Comparatively, 3.6% of Grab shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Blend Labs and Grab”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blend Labs | $123.51 million | 3.38 | -$6.80 million | ($0.10) | -17.25 |
| Grab | $3.37 billion | 4.21 | $268.00 million | $0.01 | 346.00 |
Grab has higher revenue and earnings than Blend Labs. Blend Labs is trading at a lower price-to-earnings ratio than Grab, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Blend Labs has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Grab has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.
Profitability
This table compares Blend Labs and Grab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blend Labs | -3.72% | N/A | -1.63% |
| Grab | 10.67% | 5.79% | 3.28% |
Analyst Ratings
This is a summary of recent ratings for Blend Labs and Grab, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blend Labs | 1 | 2 | 4 | 0 | 2.43 |
| Grab | 0 | 2 | 7 | 1 | 2.90 |
Blend Labs presently has a consensus price target of $3.32, indicating a potential upside of 92.27%. Grab has a consensus price target of $6.19, indicating a potential upside of 78.87%. Given Blend Labs’ higher possible upside, equities analysts clearly believe Blend Labs is more favorable than Grab.
Summary
Grab beats Blend Labs on 12 of the 15 factors compared between the two stocks.
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.
About Grab
Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.
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