Comparing JFrog (NASDAQ:FROG) & Nextdoor (NYSE:KIND)

JFrog (NASDAQ:FROG) and Nextdoor (NYSE:KIND) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares JFrog and Nextdoor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JFrog	$531.84 million	19.13	-$71.82 million	($0.53)	-158.49
Nextdoor	$248.31 million	3.19	-$98.06 million	($0.24)	-8.63

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

Insider and Institutional Ownership

85.0% of JFrog shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 11.8% of JFrog shares are held by insiders. Comparatively, 33.4% of Nextdoor shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JFrog	-10.93%	-4.61%	-3.11%
Nextdoor	-36.95%	-15.75%	-13.84%

Analyst Ratings

This is a summary of current ratings and recommmendations for JFrog and Nextdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JFrog	1	1	18	0	2.85
Nextdoor	0	1	0	0	2.00

JFrog presently has a consensus price target of $76.63, indicating a potential downside of 8.77%. Nextdoor has a consensus price target of $2.00, indicating a potential downside of 3.38%. Given Nextdoor’s higher possible upside, analysts clearly believe Nextdoor is more favorable than JFrog.

Risk and Volatility

JFrog has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Summary

JFrog beats Nextdoor on 10 of the 14 factors compared between the two stocks.

About JFrog

JFrog Ltd. provides end-to-end hybrid software supply chain platform in the United States, Israel, India, and internationally. The company offers JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages; JFrog Curation that functions as a guardian outside the software development pipeline, controlling the admission of packages into an organization, primarily from open source or public repositories; JFrog Xray, which scans JFrog Artifactory to secure all software packages; JFrog Advanced Security, an optional add-on for select JFrog subscriptions; and JFrog Distribution that provides software package distribution. It also provides JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization’s software supply chain workflow; JFrog Insight, a DevOps intelligence tool; JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance in IoT device fleets; and JFrog Pipelines, a continuous integration and delivery tool for automating and orchestrating the movement of software packages. In addition, the company provides JFrog Pro that provides access to the universal version of JFrog Artifactory and ongoing updates, upgrades, and bug fixes; JFrog Pro X, a self-hosted-only subscription; JFrog Enterprise X, which offers cluster configuration, federated repositories, multi-region replication, larger enterprise-scale deployments, service-level agreement support, and deeper security; and JFrog Enterprise Plus, a full platform subscription option. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California.

About Nextdoor

Nextdoor Holdings, Inc. operates a neighborhood network that connects neighbors, businesses, and public services in the United States and internationally. The company enables neighbors and organizations to get information, give and get help, and build connections. It also offers advertising solutions, designs to generate value for businesses for connection and sales expansion. The company is headquartered in San Francisco, California.