Nextdoor (NYSE:NXDR – Get Free Report) and Rumble (NASDAQ:RUM – Get Free Report) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Profitability
This table compares Nextdoor and Rumble’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nextdoor | -11.08% | -6.16% | -5.45% |
| Rumble | -134.60% | -22.77% | -16.34% |
Earnings & Valuation
This table compares Nextdoor and Rumble”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nextdoor | $274.60 million | 2.98 | -$54.20 million | ($0.08) | -26.81 |
| Rumble | $100.62 million | 37.06 | -$81.83 million | ($0.59) | -12.75 |
Nextdoor has higher revenue and earnings than Rumble. Nextdoor is trading at a lower price-to-earnings ratio than Rumble, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 26.2% of Rumble shares are owned by institutional investors. 33.5% of Nextdoor shares are owned by insiders. Comparatively, 45.1% of Rumble shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Nextdoor has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Rumble has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Nextdoor and Rumble, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nextdoor | 1 | 2 | 1 | 0 | 2.00 |
| Rumble | 1 | 0 | 0 | 0 | 1.00 |
Nextdoor currently has a consensus price target of $2.80, indicating a potential upside of 30.54%. Given Nextdoor’s stronger consensus rating and higher probable upside, analysts plainly believe Nextdoor is more favorable than Rumble.
Summary
Nextdoor beats Rumble on 11 of the 14 factors compared between the two stocks.
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.
About Rumble
Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.
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