Critical Survey: NetObjects (OTCMKTS:NETO) & Blend Labs (NYSE:BLND)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NetObjects	N/A	N/A	N/A
Blend Labs	-4.28%	N/A	-2.72%

Analyst Recommendations

This is a summary of current recommendations and price targets for NetObjects and Blend Labs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetObjects	0	0	0	0	0.00
Blend Labs	1	2	4	0	2.43

Blend Labs has a consensus target price of $4.80, suggesting a potential upside of 57.64%. Given Blend Labs’ stronger consensus rating and higher possible upside, analysts plainly believe Blend Labs is more favorable than NetObjects.

Earnings & Valuation

This table compares NetObjects and Blend Labs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NetObjects	N/A	N/A	N/A	N/A	N/A
Blend Labs	$162.02 million	4.88	-$43.35 million	($0.10)	-30.45

NetObjects has higher earnings, but lower revenue than Blend Labs.

Insider and Institutional Ownership

52.6% of Blend Labs shares are held by institutional investors. 13.6% of NetObjects shares are held by company insiders. Comparatively, 35.5% of Blend Labs shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Blend Labs beats NetObjects on 6 of the 8 factors compared between the two stocks.

About NetObjects

NetObjects Inc. provides web design software and templates. The company offers NetObjects Fusion, a web design software that enables to build, manage, and promote websites; and NetObjects Fusion Essentials, a free drag-and-drop website builder. It also provides NetObjects Mosaic, an online application for mobile website designing; and publishes website for photographers. The company was founded in 1996 and is based in Doylestown, Pennsylvania.

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.