Reviewing Blend Labs (NYSE:BLND) and Datasea (NASDAQ:DTSS)

Blend Labs (NYSE:BLND) and Datasea (NASDAQ:DTSS) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Valuation & Earnings

This table compares Blend Labs and Datasea”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blend Labs	$123.51 million	2.73	-$6.80 million	($0.09)	-15.83
Datasea	$40.70 million	0.17	-$2.13 million	($0.32)	-2.06

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blend Labs	1	3	4	0	2.38
Datasea	1	0	0	0	1.00

Blend Labs currently has a consensus target price of $2.82, indicating a potential upside of 97.66%. Given Blend Labs’ stronger consensus rating and higher probable upside, research analysts plainly believe Blend Labs is more favorable than Datasea.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blend Labs	0.32%	N/A	-3.15%
Datasea	-4.80%	-88.98%	-37.33%

Insider & Institutional Ownership

52.6% of Blend Labs shares are owned by institutional investors. Comparatively, 82.1% of Datasea shares are owned by institutional investors. 40.3% of Blend Labs shares are owned by insiders. Comparatively, 50.6% of Datasea shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Blend Labs has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Datasea has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Summary

Blend Labs beats Datasea on 10 of the 14 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 Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.