Financial Survey: Nextdoor (NYSE:NXDR) and EverQuote (NASDAQ:EVER)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextdoor	$257.65 million	3.44	-$54.20 million	($0.08)	-29.06
EverQuote	$755.20 million	1.23	$99.31 million	$3.08	8.35

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

Volatility and Risk

Nextdoor has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, EverQuote has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Nextdoor and EverQuote, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextdoor	1	2	1	0	2.00
EverQuote	1	1	6	0	2.62

Nextdoor currently has a consensus target price of $2.80, suggesting a potential upside of 20.43%. EverQuote has a consensus target price of $28.17, suggesting a potential upside of 9.56%. Given Nextdoor’s higher probable upside, analysts plainly believe Nextdoor is more favorable than EverQuote.

Insider and Institutional Ownership

35.7% of Nextdoor shares are held by institutional investors. Comparatively, 91.5% of EverQuote shares are held by institutional investors. 33.5% of Nextdoor shares are held by insiders. Comparatively, 23.7% of EverQuote shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Nextdoor and EverQuote’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%
EverQuote	15.16%	50.29%	36.69%

Summary

EverQuote beats Nextdoor on 10 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 EverQuote

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers auto, home and renters, and life insurance. The company serves carriers and agents, as well as indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.