Financial Analysis: Weave Communications (NYSE:WEAV) & GitLab (NASDAQ:GTLB)

GitLab (NASDAQ:GTLB) and Weave Communications (NYSE:WEAV) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Risk and Volatility

GitLab has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Weave Communications has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.

Earnings and Valuation

This table compares GitLab and Weave Communications”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GitLab	$759.25 million	8.39	-$6.33 million	($0.27)	-140.15
Weave Communications	$204.31 million	2.74	-$28.35 million	($0.43)	-16.67

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

Institutional & Insider Ownership

95.0% of GitLab shares are owned by institutional investors. Comparatively, 86.8% of Weave Communications shares are owned by institutional investors. 21.4% of GitLab shares are owned by company insiders. Comparatively, 18.4% of Weave Communications shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for GitLab and Weave Communications, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GitLab	1	10	16	2	2.66
Weave Communications	1	1	2	1	2.60

GitLab presently has a consensus price target of $53.71, suggesting a potential upside of 41.94%. Weave Communications has a consensus price target of $11.50, suggesting a potential upside of 60.48%. Given Weave Communications’ higher possible upside, analysts clearly believe Weave Communications is more favorable than GitLab.

Profitability

This table compares GitLab and Weave Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GitLab	-4.70%	-1.51%	-0.91%
Weave Communications	-14.32%	-42.10%	-15.65%

Summary

GitLab beats Weave Communications on 12 of the 15 factors compared between the two stocks.

About GitLab

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. The company helps organizations to plan, build, secure, and deploy software to drive business outcomes. It also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. GitLab Inc. was founded in 2011 and is headquartered in San Francisco, California.

About Weave Communications

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.