Financial Contrast: Lucas GC (NASDAQ:LGCL) vs. Blend Labs (NYSE:BLND)

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Lucas GC and Blend Labs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucas GC	0	0	0	0	N/A
Blend Labs	0	1	5	0	2.83

Blend Labs has a consensus price target of $3.93, suggesting a potential upside of 16.96%. Given Blend Labs’ higher possible upside, analysts plainly believe Blend Labs is more favorable than Lucas GC.

Institutional and Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lucas GC	N/A	N/A	N/A
Blend Labs	-77.63%	-595.99%	-40.93%

Earnings and Valuation

This table compares Lucas GC and Blend Labs’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucas GC	$1.47 billion	0.07	N/A	N/A	N/A
Blend Labs	$152.12 million	5.57	-$178.69 million	($0.58)	-5.79

Lucas GC has higher revenue and earnings than Blend Labs.

Summary

Blend Labs beats Lucas GC on 5 of the 9 factors compared between the two stocks.

About Lucas GC

Lucas GC Limited, through its subsidiaries, provides online agent-centric human capital management services based on platform-as-a-service (PaaS) in the People's Republic of China. Its Star Career and Columbus platforms enables registered users to receive customized job recommendations and work as talent scouts to source suitable candidates for its corporate customers through their social network, as well as receive trainings and other value-added services. The company's platform provides permanent and flexible employment recruitment services; outsourcing services primarily for technology-related projects to design, develop, and deliver the projects within budget and on time with acceptable quality; information technology services to generate sales leads for its corporate customers; and training services comprising career-related certification programs. In addition, it engages in the media and entertainment business; and provides management consulting services. The company was founded in 2011 and is based in Beijing, China. Lucas GC Limited operates as a subsidiary of HTL Lucky Holding Limited.

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.