Nextdoor (NXDR) vs. Its Rivals Financial Analysis

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

Institutional & Insider 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

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

Earnings & Valuation

This table compares Nextdoor and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-12.50
Nextdoor Competitors	$248.25 million	-$80.63 million	-12.42

Nextdoor has higher revenue and earnings than its rivals. Nextdoor is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Nextdoor and its rivals’ 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%

Analyst Ratings

This is a summary of recent ratings and target prices for Nextdoor and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	100	206	223	14	2.28

Nextdoor presently has a consensus price target of $2.10, indicating a potential upside of 20.00%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 114.30%. Given Nextdoor’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Nextdoor has less favorable growth aspects than its rivals.

Summary

Nextdoor beats its rivals 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.