PubMatic (NASDAQ:PUBM – Get Free Report) and Blend Labs (NYSE:BLND – Get Free Report) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.
Profitability
This table compares PubMatic and Blend Labs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PubMatic | 3.33% | 3.29% | 1.58% |
| Blend Labs | -118.15% | -595.99% | -47.13% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for PubMatic and Blend Labs, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PubMatic | 0 | 2 | 4 | 0 | 2.67 |
| Blend Labs | 0 | 3 | 2 | 0 | 2.40 |
Valuation & Earnings
This table compares PubMatic and Blend Labs’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PubMatic | $267.01 million | 4.06 | $8.88 million | $0.15 | 144.48 |
| Blend Labs | $156.85 million | 3.89 | -$178.69 million | ($0.77) | -3.14 |
PubMatic has higher revenue and earnings than Blend Labs. Blend Labs is trading at a lower price-to-earnings ratio than PubMatic, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
64.3% of PubMatic shares are held by institutional investors. Comparatively, 52.6% of Blend Labs shares are held by institutional investors. 2.0% of PubMatic 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.
Volatility and Risk
PubMatic has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Blend Labs has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Summary
PubMatic beats Blend Labs on 12 of the 14 factors compared between the two stocks.
About PubMatic
PubMatic, Inc., a technology company, engages in the provision of a cloud infrastructure platform that enables real-time programmatic advertising transactions for digital content creators, advertisers, agencies, agency trading desks, and demand side platforms worldwide. Its PubMatic SSP, a sell-side platform, used for the purchase and sale of digital advertising inventory for publishers and buyers. The company also provides solutions, including OpenWrap, a header bidding solution; Openwrap OTT, a prebid-powered unified bidding solution; Openwrap SDK, an enterprise-grade management tools and analytics; Connect, a solution that provides additional data and insights to publishers and buyers; Activate, which allows buyers to execute direct deals on its platform across publisher inventory; Convert, a commerce media solution; and Identity Hub, an ID management tool for publishers that leverages specialized technology?infrastructure?to simplify the complex alternative identifier marketplace. Its platform supports an array of ad formats and digital device types, including mobile app, mobile web, desktop, display, video, over-the-top (OTT), connected television, and media. The company was incorporated in 2006 and is based in Redwood City, 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.
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