EverQuote (NASDAQ:EVER – Get Free Report) and Nextdoor (NYSE:NXDR – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Profitability
This table compares EverQuote and Nextdoor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EverQuote | 15.16% | 50.29% | 36.69% |
| Nextdoor | -11.08% | -6.16% | -5.45% |
Valuation and Earnings
This table compares EverQuote and Nextdoor”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EverQuote | $692.52 million | 1.32 | $99.31 million | $3.08 | 8.26 |
| Nextdoor | $274.60 million | 3.12 | -$54.20 million | ($0.08) | -28.12 |
EverQuote has higher revenue and earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than EverQuote, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
EverQuote has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for EverQuote and Nextdoor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EverQuote | 1 | 1 | 6 | 0 | 2.62 |
| Nextdoor | 1 | 2 | 1 | 0 | 2.00 |
EverQuote presently has a consensus target price of $28.17, suggesting a potential upside of 10.72%. Nextdoor has a consensus target price of $2.80, suggesting a potential upside of 24.44%. Given Nextdoor’s higher probable upside, analysts clearly believe Nextdoor is more favorable than EverQuote.
Institutional and Insider Ownership
91.5% of EverQuote shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 23.7% of EverQuote shares are held by company insiders. Comparatively, 33.5% of Nextdoor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
EverQuote beats Nextdoor on 10 of the 14 factors compared between the two stocks.
About EverQuote
EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.
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.
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