Head-To-Head Analysis: Nextdoor (NXDR) and Its Peers

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

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%

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextdoor	$257.65 million	-$54.20 million	-11.50
Nextdoor Competitors	$274.45 million	-$87.54 million	17.62

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.

Insider and Institutional Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 63.1% of shares of all “Services – Computer Programming And Data Processing” companies are held by institutional investors. 33.4% of Nextdoor shares are held by insiders. Comparatively, 20.0% of shares of all “Services – Computer Programming And Data Processing” companies 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.

Analyst Ratings

This is a breakdown of recent recommendations for Nextdoor and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	0	0	1.67
Nextdoor Competitors	102	206	233	15	2.29

Nextdoor currently has a consensus target price of $2.10, suggesting a potential upside of 30.43%. As a group, “Services – Computer Programming And Data Processing” companies have a potential upside of 98.55%. Given Nextdoor’s peers stronger consensus rating and higher possible upside, analysts clearly believe Nextdoor has less favorable growth aspects than its peers.

Risk and Volatility

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.

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.