Cardlytics (NASDAQ:CDLX – Get Free Report) and Nextdoor (NYSE:KIND – Get Free Report) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.
Volatility & Risk
Cardlytics has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Nextdoor has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Valuation and Earnings
This table compares Cardlytics and Nextdoor’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Cardlytics | $309.20 million | 1.90 | -$134.70 million | ($3.46) | -3.53 |
Nextdoor | $218.31 million | 3.57 | -$147.76 million | ($0.38) | -5.21 |
Institutional & Insider Ownership
68.1% of Cardlytics shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 0.8% of Cardlytics shares are held by insiders. Comparatively, 47.6% of Nextdoor shares are held by 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.
Profitability
This table compares Cardlytics and Nextdoor’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Cardlytics | -43.56% | -25.38% | -8.32% |
Nextdoor | -67.69% | -24.22% | -20.71% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Cardlytics and Nextdoor, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Cardlytics | 0 | 1 | 3 | 0 | 2.75 |
Nextdoor | 0 | 4 | 0 | 0 | 2.00 |
Cardlytics currently has a consensus target price of $15.50, suggesting a potential upside of 26.84%. Nextdoor has a consensus target price of $2.85, suggesting a potential upside of 43.94%. Given Nextdoor’s higher possible upside, analysts plainly believe Nextdoor is more favorable than Cardlytics.
Summary
Cardlytics beats Nextdoor on 9 of the 14 factors compared between the two stocks.
About Cardlytics
Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.
About Nextdoor
Nextdoor Holdings, Inc. operates a neighborhood network that connects neighbors, businesses, and public services in the United States and internationally. The company enables neighbors and organizations to get information, give and get help, and build connections. It also offers advertising solutions, designs to generate value for businesses for connection and sales expansion. The company is headquartered in San Francisco, California.
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