Head to Head Contrast: Nextdoor (NXDR) versus Its Rivals

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

Volatility & Risk

Nextdoor has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Nextdoor’s peers have a beta of 0.53, meaning that their average share price is 47% less volatile than the S&P 500.

Institutional and Insider Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 63.1% of shares of all “Services – Computer Programming And Data Processing” companies are owned by institutional investors. 33.4% of Nextdoor shares are owned by insiders. Comparatively, 20.0% of shares of all “Services – Computer Programming And Data Processing” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Nextdoor and its peers’ 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	-65.22%	-919.72%	-68.65%

Analyst Ratings

This is a summary of current ratings and price targets for Nextdoor and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	102	206	231	15	2.29

Nextdoor currently has a consensus target price of $2.10, indicating a potential upside of 30.43%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 98.45%. Given Nextdoor’s peers stronger consensus rating and higher probable upside, analysts plainly believe Nextdoor has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Nextdoor and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-11.50
Nextdoor Competitors	$316.24 million	-$87.54 million	17.60

Nextdoor’s peers have higher revenue, but lower earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Nextdoor peers beat Nextdoor on 7 of the 13 factors compared.

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.