Analyzing FactSet Research Systems (NYSE:FDS) & Blend Labs (NYSE:BLND)

FactSet Research Systems (NYSE:FDS) and Blend Labs (NYSE:BLND) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Institutional & Insider Ownership

91.2% of FactSet Research Systems shares are held by institutional investors. Comparatively, 52.6% of Blend Labs shares are held by institutional investors. 1.0% of FactSet Research Systems shares are held by company insiders. Comparatively, 11.8% of Blend Labs shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares FactSet Research Systems and Blend Labs’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FactSet Research Systems	$2.09 billion	7.62	$468.17 million	$13.26	31.43
Blend Labs	$156.85 million	3.91	-$178.69 million	($0.58)	-4.19

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for FactSet Research Systems and Blend Labs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FactSet Research Systems	4	7	0	0	1.64
Blend Labs	0	3	2	0	2.40

FactSet Research Systems currently has a consensus price target of $432.00, suggesting a potential upside of 3.66%. Blend Labs has a consensus price target of $3.15, suggesting a potential upside of 29.63%. Given Blend Labs’ stronger consensus rating and higher probable upside, analysts plainly believe Blend Labs is more favorable than FactSet Research Systems.

Volatility & Risk

FactSet Research Systems has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Blend Labs has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares FactSet Research Systems and Blend Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FactSet Research Systems	23.56%	34.48%	15.17%
Blend Labs	-90.62%	-595.99%	-43.58%

Summary

FactSet Research Systems beats Blend Labs on 9 of the 14 factors compared between the two stocks.

About FactSet Research Systems

FactSet Research Systems Inc., a financial data company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.

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.