Head to Head Analysis: Nextdoor (NXDR) and Its Rivals

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

Institutional and Insider 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nextdoor and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	100	205	223	14	2.28

Nextdoor currently has a consensus price target of $2.10, suggesting a potential upside of 20.00%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 114.13%. 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 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Nextdoor’s competitors have a beta of 0.54, suggesting that their average stock price is 46% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-12.50
Nextdoor Competitors	$248.14 million	-$80.63 million	-12.44

Nextdoor has higher revenue and earnings than its competitors. 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.

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	-64.93%	-919.57%	-68.56%

Summary

Nextdoor beats its competitors 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.