Reviewing Alphabet (NASDAQ:GOOGL) and Blend Labs (NYSE:BLND)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alphabet	26.70%	30.49%	21.63%
Blend Labs	-77.63%	N/A	-40.93%

Insider and Institutional Ownership

40.0% of Alphabet shares are held by institutional investors. Comparatively, 52.6% of Blend Labs shares are held by institutional investors. 11.6% of Alphabet shares are held by insiders. Comparatively, 11.8% of Blend Labs shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Alphabet and Blend Labs”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alphabet	$328.28 billion	6.13	$73.80 billion	$6.52	24.97
Blend Labs	$152.12 million	5.50	-$178.69 million	($0.58)	-5.72

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Alphabet and Blend Labs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alphabet	0	8	29	3	2.88
Blend Labs	0	2	5	0	2.71

Alphabet presently has a consensus price target of $201.76, suggesting a potential upside of 23.95%. Blend Labs has a consensus price target of $3.94, suggesting a potential upside of 18.90%. Given Alphabet’s stronger consensus rating and higher possible upside, analysts plainly believe Alphabet is more favorable than Blend Labs.

Risk & Volatility

Alphabet has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Blend Labs has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Summary

Alphabet beats Blend Labs on 12 of the 15 factors compared between the two stocks.

About Alphabet

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, 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.