Critical Survey: Nextdoor (NXDR) and 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 rivals? We will compare Nextdoor to similar businesses based on the strength of its risk, analyst recommendations, valuation, earnings, dividends, institutional ownership and profitability.

Profitability

This table compares Nextdoor and its rivals’ 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%

Institutional and Insider Ownership

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

Analyst Ratings

This is a summary of recent ratings and target prices for Nextdoor and its rivals, as reported by MarketBeat.com.

	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 31.66%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 95.16%. Given Nextdoor’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Nextdoor has less favorable growth aspects than its rivals.

Risk & Volatility

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

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-11.39
Nextdoor Competitors	$316.24 million	-$88.97 million	16.18

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

Summary

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

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.