Head-To-Head Analysis: Nextdoor (NXDR) & The Competition

Nextdoor (NYSE:NXDR) is one of 45 publicly-traded companies in the “Services – Computer Programming And Data Processing” industry, but how does it contrast to its competitors? We will compare Nextdoor to related businesses based on the strength of its institutional ownership, analyst recommendations, dividends, profitability, valuation, earnings and risk.

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	-71.72%	-1,012.07%	-75.75%

Institutional & Insider Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 59.9% of shares of all “Services – Computer Programming And Data Processing” companies are held by institutional investors. 33.4% of Nextdoor shares are held by insiders. Comparatively, 21.5% of shares of all “Services – Computer Programming And Data Processing” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets 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	123	406	514	64	2.47

Nextdoor presently has a consensus target price of $2.10, suggesting a potential upside of 42.37%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 104.50%. Given Nextdoor’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Nextdoor has less favorable growth aspects than its competitors.

Volatility and Risk

Nextdoor has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Nextdoor’s competitors have a beta of 0.52, meaning that their average stock price is 48% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-10.54
Nextdoor Competitors	$243.79 million	-$113.41 million	21.04

Nextdoor has higher revenue and earnings than its competitors. 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.

Summary

Nextdoor beats its competitors 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.