Head-To-Head Comparison: Blend Labs (NYSE:BLND) & Internet Initiative Japan (OTCMKTS:IIJIY)

Blend Labs (NYSE:BLND) and Internet Initiative Japan (OTCMKTS:IIJIY) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Insider & Institutional Ownership

52.6% of Blend Labs shares are owned by institutional investors. 13.2% of Blend Labs shares are owned by company insiders. Comparatively, 6.7% of Internet Initiative Japan shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blend Labs	$152.12 million	6.07	-$178.69 million	($0.49)	-7.41
Internet Initiative Japan	$1.91 billion	1.77	$136.83 million	$1.48	24.92

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Blend Labs and Internet Initiative Japan, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blend Labs	0	2	5	0	2.71
Internet Initiative Japan	0	0	0	0	N/A

Blend Labs presently has a consensus target price of $3.94, indicating a potential upside of 8.59%. Given Blend Labs’ higher possible upside, research analysts clearly believe Blend Labs is more favorable than Internet Initiative Japan.

Risk and Volatility

Blend Labs has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Internet Initiative Japan has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Profitability

This table compares Blend Labs and Internet Initiative Japan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blend Labs	-77.63%	N/A	-40.93%
Internet Initiative Japan	6.85%	15.94%	7.27%

Summary

Internet Initiative Japan beats Blend Labs on 7 of the 13 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 Internet Initiative Japan

Internet Initiative Japan Inc. provides Internet connectivity, WAN, outsourcing, systems integration, and network-related equipment sales services in Japan. It operates through two segments, Network Services and Systems Integration Business, and ATM Operation Business. The company offers mobile communication and remote access/telework services; WAN/network services, including SDN, multi-cloud network, closed connection, internet VPN, SEIL, remote access, wireless LAN, and GIGA-school; leased line and broadband services; IIJ DNS platform, and domain name registration and maintenance services; IIJ access ID management, dial-up access, and IIJ IPv6 fiber access services; and security solutions for IIJ managed firewall, DDoS protection, and managed IPS/IDS services. It also provides cloud solutions, such as HaaS/IaaS, cloud storage, monitoring/operation, virtual desktop, Paas/Saas, solution for Microsoft and AWS, IoT/M2M, ID management and authentication, network, global, mobile, license, and specialized solutions, as well as IIJ cloud exchange and IIJ cloud integration solutions; integrated, network, mail, and web security, endpoint, security assessment/consulting, web and mail hosting, online storage, content delivery/CDN/CMS, and system integration; IoT services and solutions in the field of industrial, agriculture, energy, and IoT-oriented mobile communication; industry-specific solution; content delivery; and global/privacy products. In addition, the company offers IT outsourcing, IIJ consulting, cognitive factory, IIJ PC deployment support, IIJ PaaS solution, IIJ EMM utilization support, IIJ private cloud, network solutions, IIJ security audit, IIJ malware analysis, IIJ content management, cloud integration solution for Microsoft and AWS, Microsoft 365 transition support solution, data center service, and data center construction engineering solutions, as well as DX edge services. The company was incorporated in 1992 and is headquartered in Tokyo, Japan.