Financial Comparison: zSpace (NASDAQ:ZSPC) and GitLab (NASDAQ:GTLB)

GitLab (NASDAQ:GTLB) and zSpace (NASDAQ:ZSPC) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Volatility and Risk

GitLab has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, zSpace has a beta of -1.44, indicating that its share price is 244% less volatile than the S&P 500.

Profitability

This table compares GitLab and zSpace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GitLab	-4.99%	-1.28%	-0.77%
zSpace	-91.13%	N/A	-236.00%

Insider and Institutional Ownership

95.0% of GitLab shares are held by institutional investors. 10.6% of GitLab shares are held by company insiders. Comparatively, 8.7% of zSpace shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares GitLab and zSpace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GitLab	$955.22 million	9.51	-$55.96 million	($0.32)	-170.41
zSpace	$27.86 million	0.13	-$25.39 million	($16.94)	-0.01

zSpace has lower revenue, but higher earnings than GitLab. GitLab is trading at a lower price-to-earnings ratio than zSpace, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for GitLab and zSpace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GitLab	4	17	7	0	2.11
zSpace	1	2	0	0	1.67

GitLab presently has a consensus price target of $51.75, indicating a potential downside of 5.10%. zSpace has a consensus price target of $75.00, indicating a potential upside of 74,900.00%. Given zSpace’s higher probable upside, analysts clearly believe zSpace is more favorable than GitLab.

Summary

GitLab beats zSpace on 10 of the 13 factors compared between the two stocks.

About GitLab

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. The company helps organizations to plan, build, secure, and deploy software to drive business outcomes. It also provides related training and professional services. The company was formerly known as GitLab B.V. and changed its name to GitLab Inc. in July 2015. GitLab Inc. was founded in 2011 and is headquartered in San Francisco, California.

About zSpace

zSpace Technologies, Inc. is a provider of commercial augmented reality and virtual reality technology principally in the education market. The Company offers differentiated hardware along with learning software modules for K-12 science, technology, engineering, game design and mathematics applications, as well as workforce-oriented career and technical education applications. zSpace Technologies Inc. is based in SAN JOSE, Calif.