AppFolio (NASDAQ:APPF) & Blend Labs (NYSE:BLND) Head to Head Comparison

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

Insider and Institutional Ownership

85.2% of AppFolio shares are owned by institutional investors. Comparatively, 52.6% of Blend Labs shares are owned by institutional investors. 4.7% of AppFolio shares are owned by company insiders. Comparatively, 35.5% of Blend Labs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares AppFolio and Blend Labs”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AppFolio	$794.20 million	10.73	$204.07 million	$5.57	42.60
Blend Labs	$162.02 million	4.90	-$43.35 million	($0.10)	-30.55

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AppFolio	22.48%	25.97%	20.95%
Blend Labs	-4.28%	N/A	-2.72%

Volatility & Risk

AppFolio has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Blend Labs has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for AppFolio and Blend Labs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AppFolio	0	0	8	0	3.00
Blend Labs	1	2	4	0	2.43

AppFolio currently has a consensus price target of $306.00, suggesting a potential upside of 28.96%. Blend Labs has a consensus price target of $4.80, suggesting a potential upside of 57.12%. Given Blend Labs’ higher probable upside, analysts plainly believe Blend Labs is more favorable than AppFolio.

Summary

AppFolio beats Blend Labs on 11 of the 14 factors compared between the two stocks.

About AppFolio

AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry in the United States. The company provides a cloud-based platform that enables users to automate and optimize common workflows; tools that assist with leasing, maintenance, and accounting; and other technology and services offered by third parties. It offers AppFolio Property Manager Core, a platform that provides the basic functionalities required to operate a property management business, as well as serves as a system of record; AppFolio Property Manager Plus, which offers housing management, student housing management, complex accounting, leasing insights, large-scale operations support, role-based permissions, stack integrations, and enhanced customer support services; AppFolio Property Manager Max offers customer relationship management functionality, field customization, customer database functionality, and customer success management services; and AppFolio Investment Manager, a software that provides investment management, asset management, and relationship management solutions. The company also provides value-added services that are designed to enhance, automate, and streamline processes and workflows for property management businesses, such as electronic payment, tenant screening, and insurance services. AppFolio, Inc. was incorporated in 2006 and is headquartered in Santa Barbara, 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.