Critical Survey: Pinterest (NYSE:PINS) & Nextdoor (NYSE:KIND)

Pinterest (NYSE:PINSGet Rating) and Nextdoor (NYSE:KINDGet Rating) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Earnings and Valuation

This table compares Pinterest and Nextdoor’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pinterest $2.58 billion 5.90 $316.44 million $0.48 47.73
Nextdoor $192.20 million 5.66 -$95.32 million N/A N/A

Pinterest has higher revenue and earnings than Nextdoor.

Profitability

This table compares Pinterest and Nextdoor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pinterest 12.48% 12.69% 10.96%
Nextdoor N/A -23.94% -13.59%

Risk & Volatility

Pinterest has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Nextdoor has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Insider and Institutional Ownership

63.8% of Pinterest shares are owned by institutional investors. 7.6% of Pinterest shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Pinterest and Nextdoor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pinterest 0 19 6 0 2.24
Nextdoor 0 4 1 0 2.20

Pinterest presently has a consensus price target of $37.04, indicating a potential upside of 61.68%. Nextdoor has a consensus price target of 8.80, indicating a potential upside of 212.06%. Given Nextdoor’s higher possible upside, analysts plainly believe Nextdoor is more favorable than Pinterest.

Summary

Pinterest beats Nextdoor on 11 of the 12 factors compared between the two stocks.

About Pinterest (Get Rating)

Pinterest, Inc. operates as a visual discovery engine in the United States and internationally. The company's engine allows people to find inspiration for their lives, including recipes, style and home inspiration, DIY, and others; and provides video, product, and idea pins. It shows visual machine learning recommendations based on pinners taste and interests. The company was formerly known as Cold Brew Labs Inc. and changed its name to Pinterest, Inc. in April 2012. Pinterest, Inc. was incorporated in 2008 and is headquartered in San Francisco, California.

About Nextdoor (Get Rating)

Nextdoor Holdings, Inc. operates as the neighborhood network that connects neighbors, businesses, and public services in the United States and internationally. It enables small and mid-sized businesses, large brands, public agencies, and nonprofits to receive information, give and get help, and build connections. The company is headquartered in San Francisco, California.

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