Gorilla Technology Group (NASDAQ:GRRR) versus Blend Labs (NYSE:BLND) Financial Analysis

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

Institutional & Insider Ownership

52.6% of Blend Labs shares are owned by institutional investors. Comparatively, 1.3% of Gorilla Technology Group shares are owned by institutional investors. 40.3% of Blend Labs shares are owned by company insiders. Comparatively, 30.5% of Gorilla Technology Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blend Labs	0.32%	N/A	-3.15%
Gorilla Technology Group	N/A	N/A	N/A

Volatility & Risk

Blend Labs has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Gorilla Technology Group has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Blend Labs and Gorilla Technology Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blend Labs	1	3	4	0	2.38
Gorilla Technology Group	1	1	4	0	2.50

Blend Labs presently has a consensus price target of $2.82, suggesting a potential upside of 97.66%. Gorilla Technology Group has a consensus price target of $37.25, suggesting a potential upside of 174.10%. Given Gorilla Technology Group’s stronger consensus rating and higher possible upside, analysts clearly believe Gorilla Technology Group is more favorable than Blend Labs.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blend Labs	$123.51 million	2.73	-$6.80 million	($0.09)	-15.83
Gorilla Technology Group	$101.36 million	3.69	-$11.28 million	($0.54)	-25.17

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

Summary

Blend Labs beats Gorilla Technology Group on 8 of the 12 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 Gorilla Technology Group

Gorilla Technology Group Inc. provides video intelligence, Internet of Things (IoT) security, and edge content management hardware, software, and services in the Asia Pacific region. The company operates through three segments: Video IoT, Security Convergence, and Other segments. It offers intelligent video analytics AI models for various verticals, such as behavioral analytics, people/face recognition, vehicle analysis, object recognition, and business intelligence that can scan video for patterns and distinguish specific items using AI algorithms and metadata. The company also provides information technology (IT) and operational technology (OT) security convergence AI algorithms for system administrators and security engineers to detect suspicious behaviors in real time; network anomaly detection AI models; and endpoint malware and suspicious behavior detection AI models. In addition, it offers intelligent video analytics (IVA) appliances to analyze and turn unstructured video and picture data into structured data; IVAR appliance that provides insight into business and operations in a statistic dashboard; smart attendance to track employee health and safety, work hours, clock-ins/outs, and absenteeism, as well as to protect company assets and intellectual properties; event and video management system appliances to store event/object attributes in temporal-spatial big data database from Gorilla; and operation technology security appliance to monitor and control physical devices, processes, and infrastructure, as well as to protect industrial systems and networks from various threats. Further, the company provides smart retail SaaS for shopper demographics, visualized shopper behavior, and advanced data analytics, smart city and transportation SaaS for traffic management, public safety, and planning data; and endpoint security SaaS that protects endpoints against security threats. Gorilla Technology Group Inc. is headquartered in London, the United Kingdom.