Nextdoor (NYSE:KIND – Get Free Report) and AppLovin (NASDAQ:APP – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Risk and Volatility
Nextdoor has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, AppLovin has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.
Valuation and Earnings
This table compares Nextdoor and AppLovin’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nextdoor | $218.31 million | 3.61 | -$147.76 million | ($0.38) | -5.26 |
| AppLovin | $2.63 billion | 8.85 | $356.71 million | $1.00 | 68.17 |
Analyst Ratings
This is a breakdown of current recommendations for Nextdoor and AppLovin, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nextdoor | 0 | 4 | 0 | 0 | 2.00 |
| AppLovin | 1 | 4 | 12 | 0 | 2.65 |
Nextdoor currently has a consensus target price of $2.85, indicating a potential upside of 41.79%. AppLovin has a consensus target price of $59.31, indicating a potential downside of 12.01%. Given Nextdoor’s higher probable upside, research analysts clearly believe Nextdoor is more favorable than AppLovin.
Institutional & Insider Ownership
35.7% of Nextdoor shares are held by institutional investors. Comparatively, 41.9% of AppLovin shares are held by institutional investors. 47.6% of Nextdoor shares are held by company insiders. Comparatively, 12.4% of AppLovin shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Nextdoor and AppLovin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nextdoor | -67.69% | -24.22% | -20.71% |
| AppLovin | 10.84% | 24.69% | 6.54% |
Summary
AppLovin beats Nextdoor on 12 of the 14 factors compared between the two stocks.
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.
About AppLovin
AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products. It also offers SparkLabs, which uses app store optimization to enhance ad visibility; AppLovin Exchange, which connects buyers to mobile and CTV devices through a single and direct RTB exchange; and Array, an end-to-end app management suite for mobile operators and end users. In addition, the company operates various free-to-play mobile games. It serves individuals, small and independent businesses, enterprises, advertisers and advertising networks, mobile app publishers, indie studio developers, and internet platforms. AppLovin Corporation was incorporated in 2011 and is headquartered in Palo Alto, California.
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