Nextdoor (NXDR) & Its Peers Critical Contrast

Nextdoor (NYSE:NXDR) is one of 48 public companies in the “Services – Computer Programming And Data Processing” industry, but how does it contrast to its peers? We will compare Nextdoor to related businesses based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Nextdoor and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	99	204	221	14	2.28

Nextdoor presently has a consensus price target of $2.10, suggesting a potential upside of 26.13%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 119.91%. Given Nextdoor’s peers stronger consensus rating and higher possible upside, analysts clearly believe Nextdoor has less favorable growth aspects than its peers.

Profitability

This table compares Nextdoor and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextdoor	-21.04%	-11.48%	-10.11%
Nextdoor Competitors	-63.65%	-919.53%	-68.53%

Insider and Institutional Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 57.9% of shares of all “Services – Computer Programming And Data Processing” companies are held by institutional investors. 33.4% of Nextdoor shares are held by company insiders. Comparatively, 20.6% of shares of all “Services – Computer Programming And Data Processing” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Nextdoor has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Nextdoor’s peers have a beta of 0.54, meaning that their average share price is 46% less volatile than the S&P 500.

Valuation & Earnings

This table compares Nextdoor and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$98.06 million	-11.89
Nextdoor Competitors	$257.01 million	-$55.65 million	-9.74

Nextdoor has higher revenue, but lower earnings than its peers. Nextdoor is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Nextdoor peers beat Nextdoor on 7 of the 13 factors compared.

Nextdoor Company Profile

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.