Critical Analysis: Xperi (NYSE:XPER) and Nextdoor (NYSE:NXDR)

Xperi (NYSE:XPER) and Nextdoor (NYSE:NXDR) are both small-cap services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Institutional and Insider Ownership

94.3% of Xperi shares are held by institutional investors. Comparatively, 35.7% of Nextdoor shares are held by institutional investors. 2.1% of Xperi shares are held by insiders. Comparatively, 33.4% of Nextdoor shares 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.

Earnings and Valuation

This table compares Xperi and Nextdoor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xperi	$448.11 million	0.66	-$56.34 million	($1.23)	-5.10
Nextdoor	$257.65 million	2.51	-$54.20 million	($0.14)	-11.89

Nextdoor has lower revenue, but higher earnings than Xperi. Nextdoor is trading at a lower price-to-earnings ratio than Xperi, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Xperi and Nextdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xperi	-12.57%	-0.73%	-0.49%
Nextdoor	-21.04%	-11.48%	-10.11%

Analyst Ratings

This is a summary of current ratings and target prices for Xperi and Nextdoor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xperi	2	0	0	0	1.00
Nextdoor	1	2	0	0	1.67

Nextdoor has a consensus price target of $2.10, indicating a potential upside of 26.13%. Given Nextdoor’s stronger consensus rating and higher probable upside, analysts clearly believe Nextdoor is more favorable than Xperi.

Volatility & Risk

Xperi has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Nextdoor has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Summary

Xperi beats Nextdoor on 7 of the 13 factors compared between the two stocks.

About Xperi

Xperi Holding Corporation, together with its subsidiaries, operates as a consumer and entertainment product/solutions licensing company worldwide. It operates through two segments, Product, and Intellectual Property Licensing. The company invents, develops, and delivers various technologies. It licenses audio, digital radio, imaging, edge-based machine learning, and multi-channel video user experience solutions to consumer electronics customers, automotive manufacturers, or supply chain partners. The company also provides licensing to multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies in media industry; and memory, sensors, RF component, and foundry companies in semiconductor industry. It provides its technologies under the DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and Perceive brands. The company is headquartered in San Jose, California.

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.