Comparing zSpace (NASDAQ:ZSPC) and GitLab (NASDAQ:GTLB)

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for GitLab and zSpace, as reported by MarketBeat.com.

	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 currently has a consensus target price of $51.75, suggesting a potential downside of 5.91%. zSpace has a consensus target price of $75.00, suggesting a potential upside of 71,328.57%. Given zSpace’s higher probable upside, analysts clearly believe zSpace is more favorable than GitLab.

Valuation and Earnings

This table compares GitLab and zSpace”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GitLab	$955.22 million	9.59	-$55.96 million	($0.32)	-171.88
zSpace	$27.86 million	0.14	-$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.

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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

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%

Volatility & Risk

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

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.