Critical Analysis: Nextdoor (NXDR) vs. Its Peers

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

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%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$253.40 million	-$54.20 million	-12.71
Nextdoor Competitors	$255.05 million	-$80.63 million	-12.17

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.

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nextdoor and its competitors, as provided by MarketBeat.com.

	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 target price of $2.10, indicating a potential upside of 17.98%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 108.69%. Given Nextdoor’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Nextdoor has less favorable growth aspects than its competitors.

Risk & Volatility

Nextdoor has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Nextdoor’s competitors have a beta of 0.54, indicating that their average share price is 46% less volatile than the S&P 500.

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.