Critical Contrast: Nextdoor (NXDR) vs. Its Rivals

Nextdoor (NYSE:NXDR) is one of 47 public companies in the “Services – Computer Programming And Data Processing” industry, but how does it compare to its competitors? We will compare Nextdoor to similar businesses based on the strength of its profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Profitability

This table compares Nextdoor and its competitors’ 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	-65.22%	-919.72%	-68.65%

Analyst Recommendations

This is a summary of current ratings and price targets for Nextdoor and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	103	206	233	15	2.29

Nextdoor presently has a consensus target price of $2.10, suggesting a potential upside of 34.19%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 103.30%. Given Nextdoor’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Nextdoor has less favorable growth aspects than its competitors.

Volatility and Risk

Nextdoor has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Nextdoor’s competitors have a beta of 0.53, meaning that their average stock price is 47% less volatile than the S&P 500.

Insider & Institutional Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 62.0% of shares of all “Services – Computer Programming And Data Processing” companies are owned by institutional investors. 33.4% of Nextdoor shares are owned by insiders. Comparatively, 15.5% of shares of all “Services – Computer Programming And Data Processing” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Nextdoor and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-11.18
Nextdoor Competitors	$276.56 million	-$88.97 million	16.83

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

Summary

Nextdoor competitors 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.