Reviewing Blend Labs (NYSE:BLND) & Sound Group (NASDAQ:SOGP)

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

Risk & Volatility

Blend Labs has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Sound Group has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.

Insider & Institutional Ownership

52.6% of Blend Labs shares are held by institutional investors. Comparatively, 1.6% of Sound Group shares are held by institutional investors. 13.2% of Blend Labs shares are held by insiders. Comparatively, 25.2% of Sound Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Blend Labs and Sound Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blend Labs	$156.85 million	6.39	-$178.69 million	($0.34)	-11.51
Sound Group	$291.80 million	0.04	-$17.84 million	N/A	N/A

Sound Group has higher revenue and earnings than Blend Labs.

Analyst Ratings

This is a breakdown of current recommendations for Blend Labs and Sound Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blend Labs	0	2	6	1	2.89
Sound Group	0	0	0	0	0.00

Blend Labs presently has a consensus target price of $5.11, indicating a potential upside of 30.45%. Given Blend Labs’ stronger consensus rating and higher probable upside, analysts clearly believe Blend Labs is more favorable than Sound Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blend Labs	-49.34%	N/A	-34.07%
Sound Group	N/A	N/A	N/A

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 Sound Group

Sound Group Inc. operates as an audio-centric social and entertainment company. It focuses on building audio platform to connect and communicate. The company, through its product portfolio and in-house technologies, caters to user interest in audio entertainment and social networking. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.