Cardlytics (NASDAQ:CDLX – Get Free Report) and Nextdoor (NYSE:KIND – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Cardlytics and Nextdoor, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Cardlytics | 0 | 1 | 3 | 0 | 2.75 |
Nextdoor | 0 | 4 | 0 | 0 | 2.00 |
Cardlytics currently has a consensus target price of $15.50, indicating a potential upside of 28.52%. Nextdoor has a consensus target price of $2.85, indicating a potential upside of 43.94%. Given Nextdoor’s higher probable upside, analysts plainly believe Nextdoor is more favorable than Cardlytics.
Institutional and Insider Ownership
Risk and Volatility
Cardlytics has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Nextdoor has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Profitability
This table compares Cardlytics and Nextdoor’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Cardlytics | -43.56% | -25.38% | -8.32% |
Nextdoor | -67.69% | -24.22% | -20.71% |
Earnings and Valuation
This table compares Cardlytics and Nextdoor’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Cardlytics | $309.20 million | 1.89 | -$134.70 million | ($3.46) | -3.51 |
Nextdoor | $218.31 million | 3.57 | -$147.76 million | ($0.38) | -5.21 |
Cardlytics has higher revenue and earnings than Nextdoor. Nextdoor is trading at a lower price-to-earnings ratio than Cardlytics, indicating that it is currently the more affordable of the two stocks.
Summary
Cardlytics beats Nextdoor on 8 of the 13 factors compared between the two stocks.
About Cardlytics
Cardlytics, Inc. operates an advertising platform in the United States and the United Kingdom. It offers Cardlytics platform, a proprietary native bank advertising channel that enables marketers to reach customers through their network of financial institution partners through digital channels, such as online, mobile applications, email, and various real-time notifications; and Bridg platform, a customer data platform which utilizes point-of-sale data and enables marketers to perform analytics and targeted loyalty marketing, as well as measure the impact of their marketing. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.
About Nextdoor
Nextdoor Holdings, Inc. operates a neighborhood network that connects neighbors, businesses, and public services in the United States and internationally. The company enables neighbors and organizations to get information, give and get help, and build connections. It also offers advertising solutions, designs to generate value for businesses for connection and sales expansion. The company is headquartered in San Francisco, California.
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