Critical Comparison: Blend Labs (NYSE:BLND) vs. UiPath (NYSE:PATH)

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

Institutional and Insider Ownership

52.6% of Blend Labs shares are held by institutional investors. Comparatively, 62.5% of UiPath shares are held by institutional investors. 35.5% of Blend Labs shares are held by insiders. Comparatively, 23.2% of UiPath shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blend Labs	$162.02 million	5.64	-$43.35 million	($0.20)	-17.60
UiPath	$1.43 billion	4.97	-$73.69 million	($0.12)	-110.58

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

Risk & Volatility

Blend Labs has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, UiPath has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Blend Labs and UiPath, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blend Labs	0	2	6	1	2.89
UiPath	2	12	2	0	2.00

Blend Labs presently has a consensus price target of $4.90, suggesting a potential upside of 39.24%. UiPath has a consensus price target of $13.83, suggesting a potential upside of 4.25%. Given Blend Labs’ stronger consensus rating and higher probable upside, equities analysts clearly believe Blend Labs is more favorable than UiPath.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blend Labs	-22.72%	N/A	-13.37%
UiPath	-4.65%	-3.05%	-1.99%

Summary

Blend Labs beats UiPath on 10 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 UiPath

UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The company offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. Its platform's embedded AI, ML, and NLP capabilities improve decisioning and information processing; emulate human behavior allows organizations to address a myriad of use cases; emulate human behavior allows organizations to address a myriad of use cases; multi-tenant platform enterprise deployment with security and governance and Automation Cloud, which enables customers to begin automating without the need to provision infrastructure, install applications, or perform additional configurations; intuitive interface and low-code, drag-and-drop functionality; signed to enable people and automations to work together; and tracks, measures, and forecasts the performance of automations, enables customers to gain powerful insights and generate key performance indicators with actionable metric. It serves banking and financial services, healthcare, insurance, public sectors, manufacturing, retail, and telecom industries. The company was founded in 2005 and is headquartered in New York, New York.