Head to Head Contrast: Alithya Group (NASDAQ:ALYA) and Blend Labs (NYSE:BLND)

Alithya Group (NASDAQ:ALYA) and Blend Labs (NYSE:BLND) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Institutional & Insider Ownership

29.9% of Alithya Group shares are held by institutional investors. Comparatively, 52.6% of Blend Labs shares are held by institutional investors. 7.6% of Alithya Group shares are held by insiders. Comparatively, 11.8% of Blend Labs shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alithya Group	-8.11%	0.02%	0.01%
Blend Labs	-118.15%	-595.99%	-47.13%

Earnings & Valuation

This table compares Alithya Group and Blend Labs’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alithya Group	$395.41 million	0.00	-$22.77 million	($0.33)	N/A
Blend Labs	$156.85 million	5.22	-$178.69 million	($0.77)	-4.22

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Alithya Group and Blend Labs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alithya Group	0	0	1	0	3.00
Blend Labs	0	3	2	0	2.40

Blend Labs has a consensus target price of $3.06, indicating a potential downside of 5.77%.

Volatility & Risk

Alithya Group has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Blend Labs has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Summary

Alithya Group beats Blend Labs on 8 of the 12 factors compared between the two stocks.

About Alithya Group

Alithya Group Inc. provides strategy and digital technology services in Canada, the United States, and Europe. The company's business strategy services include strategic consulting, digital transformation, organizational performance, and enterprise architecture services. It also provides application services, such as digital applications DevOps, legacy systems modernization, control and software engineering, cloud infrastructure, quality assurance, and automated testing; enterprise solutions comprising enterprise resource planning, corporate performance management, customer relationship management, and human capital management; and data and analytics solutions, including business intelligence, data management, artificial intelligence (AI), and machine learning, as well as internet of things. In addition, the company provides AI-FI, an integrated artificial intelligence and fidelity solution; Alithya GoTest, solution allows clients to test the functionality of applications on various platforms; CASSI analytics for online weekly maintenance, outage management, petrochemical turnarounds, and maintenance and reliability; and SIDER, a secure solution that facilitates distribution of medical results to healthcare sectors and to centralized electronic medical records. It serves financial services, energy, manufacturing, telecommunications, transportation and logistics, professional services, healthcare, and government sectors. The company was founded in 1992 and is headquartered in Montreal, Canada.

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, financial technology companies, and non-bank mortgage lenders. Blend Labs, Inc. was incorporated in 2012 and is headquartered in San Francisco, California.