Nextdoor (NXDR) and Its Rivals Critical Contrast

Nextdoor (NYSE:NXDR) is one of 49 publicly-traded companies in the “Services – Computer Programming And Data Processing” industry, but how does it weigh in compared to its competitors? We will compare Nextdoor to similar companies based on the strength of its profitability, dividends, risk, institutional ownership, earnings, valuation and analyst recommendations.

Risk and Volatility

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 0.53, meaning that their average stock price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Nextdoor and its competitors, 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	102	206	231	15	2.29

Nextdoor currently has a consensus price target of $2.10, indicating a potential upside of 26.13%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 93.02%. Given Nextdoor’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Nextdoor has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

35.7% of Nextdoor shares are owned by institutional investors. Comparatively, 57.9% of shares of all “Services – Computer Programming And Data Processing” companies are owned by institutional investors. 33.4% of Nextdoor shares are owned by company insiders. Comparatively, 20.6% of shares of all “Services – Computer Programming And Data Processing” companies are owned 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.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-11.89
Nextdoor Competitors	$266.06 million	-$83.53 million	17.92

Nextdoor’s competitors have higher revenue, but lower earnings than Nextdoor. 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.

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	-65.22%	-919.72%	-68.65%

Summary

Nextdoor competitors 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.