SEMrush (NYSE:SEMR) versus Nextdoor (NYSE:NXDR) Head to Head Comparison

Nextdoor (NYSE:NXDR) and SEMrush (NYSE:SEMR) are both small-cap services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 32.9% of SEMrush shares are owned by institutional investors. 33.4% of Nextdoor shares are owned by company insiders. Comparatively, 55.6% of SEMrush shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Nextdoor has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, SEMrush has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Nextdoor and SEMrush, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
SEMrush	1	7	0	0	1.88

Nextdoor presently has a consensus target price of $2.10, indicating a potential upside of 32.49%. SEMrush has a consensus target price of $10.80, indicating a potential downside of 10.04%. Given Nextdoor’s higher possible upside, research analysts plainly believe Nextdoor is more favorable than SEMrush.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nextdoor	-21.04%	-11.48%	-10.11%
SEMrush	-4.27%	-3.19%	-2.12%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$257.65 million	2.39	-$54.20 million	($0.14)	-11.32
SEMrush	$443.64 million	4.09	-$18.96 million	($0.11)	-109.14

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

Summary

SEMrush beats Nextdoor on 10 of the 13 factors compared between the two stocks.

About Nextdoor

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 SEMrush

Semrush Holdings, Inc. develops an online visibility management software-as-a-service platform worldwide. The company enables companies to identify and reach the right audience for their content through the right channels. Its platform enables the company’s customers to understand trends and act upon insights to enhance the online visibility, and drive traffic to their websites and social media pages, as well as online listings, distribute targeted content to their customers, and measure the digital marketing campaigns. The company was founded in 2008 and is headquartered in Boston, Massachusetts.