Analyzing Blend Labs (NYSE:BLND) & Nextdoor (NYSE:KIND)

Nextdoor (NYSE:KINDGet Rating) and Blend Labs (NYSE:BLNDGet Rating) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Nextdoor -61.16% -19.14% -16.89%
Blend Labs -277.61% -56.67% -34.02%

Analyst Ratings

This is a summary of current ratings for Nextdoor and Blend Labs, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nextdoor 0 4 1 0 2.20
Blend Labs 0 8 2 0 2.20

Nextdoor presently has a consensus price target of 3.98, indicating a potential upside of 50.76%. Blend Labs has a consensus price target of $3.68, indicating a potential upside of 68.71%. Given Blend Labs’ higher possible upside, analysts clearly believe Blend Labs is more favorable than Nextdoor.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nextdoor $192.20 million 5.30 -$95.32 million -0.39 -6.77
Blend Labs $234.49 million 2.09 -$169.14 million ($3.27) -0.67

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

Risk & Volatility

Nextdoor has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Blend Labs has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Institutional & Insider Ownership

31.1% of Nextdoor shares are held by institutional investors. Comparatively, 59.5% of Blend Labs shares are held by institutional investors. 41.9% of Nextdoor shares are held by company insiders. Comparatively, 15.6% of Blend Labs shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Nextdoor beats Blend Labs on 7 of the 13 factors compared between the two stocks.

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.

About Blend Labs

(Get Rating)

Blend Labs, Inc. provides cloud-based software platform solutions for financial services firms in the United States. It operates in two segments, Blend Platform and Title365. The company offers a suite of white-label products for mortgages, home equity loans and lines of credit, vehicle loans, personal loans, credit cards, and deposit accounts. It also provides a suite of mortgage products that facilitates homeownership journey for consumers comprising close, income verification for mortgage, homeowners insurance, and realty. In addition, the company offers title search procedures for title insurance policies, escrow, and other closing and settlement services, as well as other trustee services; and professional and consulting services. It serves banks, credit unions, financial technology companies, and non-bank mortgage lenders. Blend Labs, Inc. was incorporated in 2012 and is headquartered in San Francisco, California.

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