Comparing Blend Labs (NYSE:BLND) & Health Catalyst (NASDAQ:HCAT)

Health Catalyst (NASDAQ:HCAT) and Blend Labs (NYSE:BLND) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Volatility and Risk

Health Catalyst has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Blend Labs has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Health Catalyst	-28.87%	-9.38%	-4.90%
Blend Labs	-77.63%	N/A	-40.93%

Insider and Institutional Ownership

85.0% of Health Catalyst shares are held by institutional investors. Comparatively, 52.6% of Blend Labs shares are held by institutional investors. 2.7% of Health Catalyst shares are held by insiders. Comparatively, 11.8% of Blend Labs shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Health Catalyst and Blend Labs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Health Catalyst	0	4	8	0	2.67
Blend Labs	0	1	5	0	2.83

Health Catalyst currently has a consensus price target of $11.58, indicating a potential upside of 35.95%. Blend Labs has a consensus price target of $3.93, indicating a potential upside of 0.77%. Given Health Catalyst’s higher probable upside, equities research analysts plainly believe Health Catalyst is more favorable than Blend Labs.

Valuation & Earnings

This table compares Health Catalyst and Blend Labs”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Health Catalyst	$299.48 million	1.68	-$118.15 million	($1.85)	-4.61
Blend Labs	$152.12 million	6.47	-$178.69 million	($0.58)	-6.72

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

Summary

Health Catalyst beats Blend Labs on 9 of the 14 factors compared between the two stocks.

About Health Catalyst

Health Catalyst, Inc. provides data and analytics technology and services to healthcare organizations in the United States. It operates in two segments, Technology and Professional Services. The company provides data operating system data platform which provides clients single comprehensive environment to integrate and organize data from their disparate software systems; and analytics applications, a software analytics applications build for data platform to analyze clients face across clinical and quality, population health, and financial and operational use cases. It offers services expertise solutions comprising data and analytics, domain expertise and education, tech-enabled managed, and implementation services; and opportunity analysis and prioritization, data governance, data modeling and analysis, quality and process improvement strategy, cost accounting, data abstraction, and population health strategies. The company was formerly known as HQC Holdings, Inc. and changed its name to Health Catalyst, Inc. in March 2017. Health Catalyst, Inc. was founded in 2008 and is headquartered in South Jordan, Utah.

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.