Analyzing Vimeo (NASDAQ:VMEO) and Blend Labs (NYSE:BLND)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blend Labs	-49.34%	N/A	-34.07%
Vimeo	8.08%	8.56%	5.38%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Blend Labs and Vimeo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blend Labs	0	2	6	1	2.89
Vimeo	0	2	2	0	2.50

Blend Labs presently has a consensus target price of $5.11, suggesting a potential upside of 16.07%. Vimeo has a consensus target price of $7.50, suggesting a potential upside of 7.45%. Given Blend Labs’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Blend Labs is more favorable than Vimeo.

Risk and Volatility

Blend Labs has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Vimeo has a beta of 2.23, suggesting that its stock price is 123% more volatile than the S&P 500.

Insider and Institutional Ownership

52.6% of Blend Labs shares are owned by institutional investors. Comparatively, 85.0% of Vimeo shares are owned by institutional investors. 13.2% of Blend Labs shares are owned by insiders. Comparatively, 6.3% of Vimeo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blend Labs	$156.72 million	7.19	-$178.69 million	($0.34)	-12.94
Vimeo	$419.39 million	2.76	$22.03 million	$0.20	34.90

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

Summary

Vimeo beats Blend Labs on 9 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 Vimeo

Vimeo, Inc., together with its subsidiaries, provides video software solutions worldwide. It provides the video tools through a software-as-a-service model, which enables its users to create, collaborate, and communicate with video on a single platform. The company also offers over-the-top OTT streaming and monetization services; AI-driven video creation and editing tools; and interactive and shoppable video tools. It serves large organizations, small businesses, creative professionals, marketers, and digital agencies. The company was founded in 2004 and is headquartered in New York, New York.